Adminstration for Axminster
Axminster Carpets has been placed into administration and three quarters of its workforce made redundant.
Benjamin Wiles, Geoffrey Bouchier and David Whitehouse of accountants Duff & Phelps were appointed joint-administrators.
Axminster's yarn plant at Buckfast has been closed and carpet manufacturing reduced, with 300 of Axminster's 400 staff being made redundant. Staff were paid their wages yesterday.
'The administrators continue to assess the company's financial position and explore all potential options to maximise the realisations for the company's creditors including a sale of the business. However, whilst this assessment takes place, the decision has been taken to downscale the carpet manufacturing operations and cease yarn production. Consequently, the joint-administrators have had no alternative other than to make approximately 300 employees redundant at the Axminster and Buckfast sites. Some 100 employees have been retained by the administrators.
'The factory outlet stores remain open for business as usual and the company will attempt to fulfil existing customer orders where possible. The main suppliers have already offered their continued support for the business during the administration,' said a statement.
'Trading has been difficult and although it saddens the board to make the decision to enter administration it could not be avoided. The management have 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 asses all viable options for the future of the business and achieve the best possible outcome for all concerned and most importantly the staff,' says Joshua Dutfield, Axminster director.
'We recognise the importance of the business to the local community and will be seeking to work closely with management and all key stakeholders to restructure the business where possible, including the possibility of selling all or part of the business,' says Wiles.