Pottery firm Denby to appoint administrators

Renowned 217-year-old pottery firm Denby has confirmed plans to appoint administrators saying it has struggled with rising costs in recent years.

The Derbyshire-based company was founded in 1809 and bought by the investment firm Hilco Capital 2009, saving it from collapse.

In a statement on Thursday, The Denby Group said it had filed a notice of intention to appoint administrators "as a precautionary measure", saying it had so far been unable to secure a suitable investment partner.

The firm said reduced demand, "escalating" employment costs and "soaring" energy costs had "squeezed the business financially".

The Denby Group said it had also struggled to access funding due to "tighter financial markets".

"While Denby has explored a range of options, it has not yet been able to secure a strategic investment partner aligned with the long-term vision and values of its historic British brands much loved by their large global fan base," the statement said.

"The search for a suitable partner will continue whether for the Denby Group as a whole or for the brands individually."

It added its notice of intention offered "short-term protection to allow the business to explore potential funding and restructuring solutions in an orderly manner", while its search for a suitable partner continued.

Meanwhile Denby and its subsidiary Burgess and Leigh will continue to trade, as well as Denby's international subsidiaries, the company confirmed.

Responding to the news, GMB union organiser Craig Thomson, said it was a "worrying time" for Denby employees.

"Denby pottery is a British icon, producing some of the world's finest ceramics," he said.

"This is a worrying time for workers across Denby. We are working closely with our members and reps on site.

"Britain's ceramics industry is the envy of the world.

"We must now see urgent government action on energy prices to support the sector through this time of turbulence."

Derbyshire Labour MP Linsey Farnsworth said she had held an "urgent meeting" with the firm and had been in touch with the GMB union.

Farnsworth, who represents Amber Valley in Derbyshire said: "Denby remains a world-class, viable manufacturer that continues to trade and meet demand.

"I am acting as a direct link between the company and the Department for Business and Trade to ensure every possible avenue is explored to secure a positive outcome for Amber Valley."