Tue, 05 Mar 2013 | ADMINISTRATION
It has been revealed today that troubled carpet manufacturer Axminster Carpet Ltd has entered administration.
The company’s board put the business into administration after buckling under a dramatic increase in raw material prices, the closure of a poorly performing subsidiary and the continued slowdown in trading.
Benjamin Wiles, Geoffrey Bouchier and David Whitehouse of Duff & Phelps have been brought in to manage its affairs. They are working on reviewing its finances and sale options to create as much cash for the creditors as possible. They will consider selling all or part of the business.
In the meantime Axminster’s carpet making operations have been reduced and its yarn production has been stopped. The administrators have made 300 staff redundant at its sites in Axminster and Buckfast, while 100 have been kept on.
The two factory outlet shops are still open for trading, and existing customer orders will be fulfilled where possible. Axminster’s key suppliers are continuing their services during the administration process.
Axminster Carpet’s director Joshua Dutfield said, “Trading has been difficult and although it saddens the Board to make the decision to enter administration it could not be avoided. The management team has been working with key suppliers, creditors and lenders to resolve the Company’s financial difficulties and whilst the last few weeks have been stressful, the Company managed to pay the wages yesterday.
“We are now committed to working with the Administrators to assess all viable options for the future of the business and achieve the best possible outcome for all concerned and most importantly the staff."
It has also been reported that an unidentified buyer wants to step in to save the business and keep on some of the board members.
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