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.