Pittards employees to be made redundant
7th September 2023 This article from Business Live, as per the link
The troubled leather goods manufacturer, which is based in Somerset, employs around 150 people in the UK and 900 in Ethiopia
Historic leather goods firm Pittards will close after administrators were unable to secure a buyer for the business.
Founded in 1826, the Somerset-headquartered firm, employed 135 staff in the UK and 900 in Ethiopia, which are not currently in administration.
The company has been struggling with the wider economic downturn in recent months, amid fluctuating exchange rates from the end of last year, rising energy prices, and a post-pandemic fall in demand for its products.
Read more: Five Wilko stores to close in the South West
On August 8 bosses at the manufacturer released a statement detailing Pittards’ intent to appoint administrators.
On Monday (September 4) the firm confirmed the appointment of Lucy Winterborne and Daniel Hurd of Ernst & Young as joint administrators. The pair had been holding discussions with an “interested party” with the hope of securing a sale of the company’s business and assets, but were “unable to conclude an agreement” with its debt funder to allow the sale to proceed.
In a statement they said: “As no other party has expressed an interest in acquiring the business, the Company has now ceased to trade with immediate effect and sadly, the majority of the company’s UK employees have been made redundant.”
The joint administrators will now assess options over the coming days to realise value for the company’s creditors and wind down the company’s business.
Employees that are affected by redundancy are being offered advice and support in making claims for redundancy and notice pay and will receive information from Jobcentre Plus for help with finding employment, claiming benefits and improving skills.
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The compsny had a very difficult to century. This followed a steady and large deckibe in turnover in the late 99s after the company refused to buy a tannery 8n Ethiopia to secure raw material supplies after the fall of the communist government. First they had declare a CVA to get rid of a pension scheme in enormous debt, which was done successfully but by definition left them without cash and a required new major investor with little willingness to understand the complexities of the business and Pittards role in it. Then they required a rights issue to buy a tannery in Ethiopia, which was a good buy, but in the subsequent years the balance sheet never recovered and the company was always vulnerable to shocks: of which there were of course many. Comment’s about trying to do to many things, underestimating the cost of complexity, misunderstanding where core competencies lay, losing focus on making the really good leather they were famous for and other points were bandied about by commentators. I made some comments in my International Leather Maker opinion piece which made the point that it was extremely sad. Hopefully by autumn 2024 we will be reporting some form of resurrection at least in Ethiopia. Africa is after all the continent of tomorrow and business is well placed there as long as it makes quality products and finished goods make more sense than in the UK for the brand.