Jobs crisis at Wedgwood

Around 2,700 jobs were under threat at historic Midland crystal and china maker Waterford Wedgwood today after the ailing firm joined a growing roll-call of corporate failures.

The group, known for Wedgwood pottery, Royal Doulton and Waterford crystal, has appointed receivers to parts of its Irish business and expects to appoint Deloitte as administrators at its UK arm.

Waterford, which has a manufacturing base employing 600 in Barlaston, near Stafford, collapsed after talks over a possible sale to a US private equity firm failed to bear fruit and lenders' patience ran out.

The company will continue to trade as a going concern and chief executive David Sculley is "optimistic" a buyer can be found but question marks now hang over the future of UK and Irish staff.

The UK business employs around 1,900 staff.

Today's announcement also throws into doubt the future of the factory shop based at the Red House Museum on the site of the former Stuart Crystal glassworks in High Street, Wordsley.

The Irish arm has around 800 staff based in Waterford.

Non-executive chairman Sir Anthony O'Reilly added: "We are consoled only by the fact that everything that could have been done, by management and by the board, to preserve the group, was done."

The collapse comes despite attempts to revive the struggling business since 2005 by majority owners Sir Anthony and Peter John Goulandris.

The firm was hit by the onset of the financial crisis in the autumn, with sales in October 19 per cent.