By Andras Gergely
DUBLIN, Jan 5 (Reuters) - Ireland\'s Waterford Wedgwood, whose luxury
tableware was once a mainstay of wedding gift lists worldwide, said on Monday it
had called in receivers after failing to buy more time from creditors.
The company, whose Waterford crystal is among Ireland\'s most famous
brands, said some of its subsidiaries would shortly be placed into
administration and asked that its shares be suspended from trading on the Irish
Stock Exchange.
The owner of British china makers Royal Doulton and Wedgwood, whose
pottery has graced the tables of Europe\'s royal households for more than two
centuries, had said in December that it would not be able to pay interest to
bondholders.
Waterford Wedgwood said on Monday that a grace period given by its
lenders had expired and not been renewed, but it still hoped an investor would
save the business.
\"I am disappointed that certain of the Group\'s UK and Irish subsidiaries
have had to go into administration and receivership, but we remain optimistic
that ongoing discussions will result in a buyer being found for the businesses,\"
Group Chief Executive David Sculley said in a statement.
The group, which also owns porcelain maker Rosenthal in Germany, has
8,000 employees in total, according to its website.
But it has already cut or moved most jobs from the UK and Ireland to
Indonesia and other low-cost centres, said Killian Murphy, analyst at Goodbody
Stockbrokers.
\"It wouldn\'t have a huge impact in Ireland, in the UK maybe 600 or 700
jobs,\" Murphy said, adding that it would be very tough to find a buyer for the
company.
\"Even if there is a resurgence in the economy any time soon it\'s
difficult to say Waterford Wedgwood will benefit massively from it,\" Murphy
said.
The global financial crisis and ensuing economic slowdown has already
claimed a raft of casualties in the British retail sector, including Woolworths
, which is set to close this week with a loss of 27,000 jobs.
DEBT PILE
Waterford Wedgwood was trying to modernise its product range just as the
economic downturn in its main markets Britain and the United States and the
strength of the euro hit earnings, while the credit crisis made talks with
lenders more difficult.
Top shareholders led by company chairman Anthony O\'Reilly, whose media
interests make him one of Ireland\'s richest men, have repeatedly pumped extra
funds into Waterford Wedgwood.
Its shares have been in steady decline since 2001 and have traded at
fractions of a euro cent since 2004. Based on last week\'s closing price of 0.001
euros the company had a market value of 5.35 million euros or just a fraction of
its debt.
Waterford Wedgwood\'s thinly-traded 166 million euro subordinated notes ,
due to mature in December 2010, are bid at just 3 percent of face value and
offered at 8 percent. The company also has a 210 million euro loan, which is due
to mature in June 2010, according to RLPC data.
\"The (Waterford) brand, which has been built up since effectively the
foundation of the state, should be protected for the future to maintain as many
jobs in Waterford as possible,\" said Jimmy Kelly of the Unite trade union.
Waterford Wedgwood was formed in 1986 after the merger of the
Ireland-based Waterford Glass Group and Wedgwood.
Both companies date back to the 18th century.
Wedgwood was founded 250 years ago by Josiah Wedgwood who was one of the
fathers of the industrial revolution, pioneering new production methods, the use
of steam power in manufacturing and the building of canals to transport goods to
market.
(For a factbox of UK retailers in administration please click on )
(Additional reporting by Natalie Harrison)
(Editing by Paul Hoskins and Rupert Winchester) Keywords:
WATERFORDWEDGWOOD/
(andras.gergely@reuters.com; +35315001518; Reuters Messaging:
andras.gergely.reuters.com@reuters.net)
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