Royal Worcester put up for sale as credit crunch bites
THE sister company of historic ceramics firm Spode has been put up for sale.
Accountants KPMG have been appointed to find a rescue buyer for porcelain manufacturer Royal Worcester, which merged with Spode in 1976.
The firm, which was established in 1751, is one of a number of heritage brands which have got into difficulty as the credit crunch hits the luxury goods sector.
Although it is the third-largest fine-china manufacturer in the UK behind Wedgwood and Royal Doulton, Royal Worcester has struggled in recent years in the face of cheaper competition from abroad and changing tastes.
Stoke-based Spode has also been hit by increasing competition from overseas. Last year it axed 250 workers, leaving around 160 staff at its historic headquarters in Church Street.
Bosses said the cuts were necessary to secure the future of the business. It has increased the amount of its wares made overseas from 40 per cent to 75 per cent.
It is not yet known how the Royal Worcester sale will affect the future of Spode.
No-one from the company was available for comment today.
Around 1,000 people were employed at the company's Worcester factory during its heyday but the last production workers left in 2006.
3 Comments
by Tony Boulton, Grapevine Texas
Wednesday, October 01 2008, 2:46PM
“Perhaps "Michael" would like to tell us what positive and helpful things he has to say. For my part, I have looked at both Worcester and Spode's products and, frankly, the customers in my retail store would not be attracted to pottery made in Asia and anywhere other than where these famous brands should be made. I can cite several examples of European brands in the housewares industry, where the passion and commitment of the owners continue to overcome the problems of manufacturing in a high labour cost economy. That is where the UK china industry has gone wrong, like the Sheffield cutlery industry before it. My best wishes to those potters that still remain in Stoke and elsewhere in the UK.”
by MICHAEL, Stone
Monday, September 29 2008, 10:12PM
“As usual - totally negative and unhelpful comments about the industry from Tony Boulton sitting thousands of miles away from thr real world.He sounds just like an embittered ex-potteries employee.Please shut up!!”
by Tony Boulton, Grapevine Texas
Monday, September 29 2008, 2:03PM
“This seems like a desperate act on the part of the RWS owners. Having gone the route of outsourcing, they really have nothing to sell apart from a name and its heritage. But that history has been killed stone dead by products that are an insult to the near 300 years of Worcester. That would suggest that anyone who buys the company is foolish, unless they have the sort of passion and deep pockets that would be required to rescue the entire industry.”