Historic pottery firm Wedgwood was placed into administration yesterday after years of loss-making. Business reporters Louise Psyllides, David Johnson and Graeme Brown spoke to community leaders about the impact the move will have on North Staffordshire.

PRAYERS are being sent out for a new Josiah Wedgwood to save 250 years of manufacturing from coming to an end.

Community leaders hope administrators can find a buyer for historic pottery Wedgwood, after being called in when last-ditch talks to secure its future came to nothing.

They say losing the company would not only mean 1,000 job losses – it would also signal the end of a proud part of the city's heritage.

Potteries historian Fred Hughes said: "The possibility of losing all these jobs in a time of recession is one of the worst things imaginable, but historically as far as the industry is concerned it does seem as if the last big name has now left.

"I think this will pose massive problems in the future. Wedgwood is crucial to North Staffordshire, as is Royal Doulton. They are great brands that are recognised right across the world.

"Hopefully another Josiah Wedgwood is going to come along and say this is the way to go. I think it's crucial that the factory stays in that location in some form. The problem will be if it disappears altogether."

Mr Hughes said Josiah Wedgwood set the standard for the global pottery industry when he set up a new factory in Etruria in the 1760s.

He said the company had fallen on hard times before, in the 1930s, and managed to fight on.

But Waterford Wedgwood bosses admitted late last year the business could cease to trade as a going concern, and things went from bad to worse when it missed three debt payments in December.

The parent company has debts approaching £400 million and has posted losses for almost six years.

Administrator Deloitte was called in yesterday, and has begun the search for a buyer for the Barlaston business and its Irish sister firm Waterford.

Elaine Philpott, chairman of Barlaston Parish Council, said: "This is as bad as it gets for Barlaston and the city of Stoke-on-Trent.

"Wedgwood is the last of the big potters and I am just devastated.

"It is such a shame that an icon of the pottery industry has come down to this.

"I would like to think there is a possibility of a buyer so the business can start up again. There are still a lot of skilled workers."

Garry Oakes, assistant general of pottery union Unity, said he was not surprised by the problems Wedgwood faces, but believes it is still possible to run a profitable pottery in the city.

He said: "Over the last 12 months, with Wedgwood and Royal Doulton, it has been a case of when, not if. But it still comes as a massive shock when it happens.

"As far as I'm concerned, Wedgwood is up there with the leading brands in the world.

"We have been trying to contact the receiver this morning to arrange a meeting.

"You have to remember we still have the Steelites and Dudsons and Portmeirions, who are forging ahead even though times are bad. It's not all doom and gloom."

Stoke-on-Trent South MP Rob Flello spoke to Secretary Of State For Work And Pensions James Purnell yesterday to ensure he understands the importance of Wedgwood to people in the city.

He said: "James Purnell said to me that he will do whatever he can from a Department Of Work And Pensions point of view." He added: "I am cautiously optimistic, now it has gone into receivership, that a buyer will come forward for the Wedgwood part of the business.

"My understanding from conversations I have had is that the Waterford part of the business has dragged Wedgwood down."

Stoke-on-Trent Central MP Mark Fisher said: "This is the worst possible news, not only for the 1,000 families affected, but also for the whole of North Staffordshire and the whole of the ceramic industry.

"Wedgwood is the brand leader and an international flag carrier, not just for Stoke-on-Trent but for the whole of the industry.

"We are going to do whatever we can for the 1,500 families hit by this but we also need to do whatever we can for the ceramic industry as a whole. There is no doubt that this is the worst possible way to start the New Year but we have got to fight it."

The Sentinel reported last week how Business Secretary Peter Mandelson has been in touch with development agency Advantage West Midlands (AWM) about how to help Wedgwood.

It is thought one option would be for AWM to buy some of Wedgwood's land in Barlaston for development.

The agency declined to comment on this matter. But AWM partnership director Henriette Lyttle-Breukelaar said: "AWM will continue discussions with the company and working closely with partners co-ordinate a robust response to the emerging situation.

"A particular focus will be on reinforcing the successful retraining initiative."

Joint administrator Angus Martin said Waterford Wedgwood had benefited from masses of cash pumped in by shareholders.

Mr Martin said the business will continue to trade as he seeks a buyer. He added: "We will work closely with (chief executive) David Sculley and (chief finance officer) Anthony Jones, who have both played active roles in the restructuring efforts and the numerous conversations with potential investors.

"Waterford, Wedgwood and Royal Doulton are classic brands that represent a high quality product which is steeped in history."

Richard Farmiloe, investment manager of Hanley investment firm Brewin Dolphin, said the writing has been on the wall for Waterford Wedgwood as debts have mounted. He said: "The pottery industry has undoubtedly been a tough industry to be in over the last few years, but I would say it is pretty obvious that the management consistently failed to get to a grip on costs or to right-size the business for the trading conditions it faced."