Jobs at risk due to volcanic ash

Around 70 jobs at a Black Country leatherworks are hanging in the balance due to the impact of the volcanic ash cloud, it emerged today.

Bosses at George Stuart in Bloxwich, which makes belts for high street giant Next, have admitted the company is poised to go into administration by the end of the week.The firm in

Central Drive imports the majority of its leather and buckles from across Europe and the Far East but was unable to get them due to flights stopped by Iceland's volcano.

It led to a loss of trade and managers filing a notice of intent to appoint administrators, leaving workers facing an uncertain future.

Director Richard Merrick today said the disruption had been a big factor during what is already a difficult trading period. The business has not been closed.

"We got caught out by the ash cloud as we fly a lot of our raw materials in. We lost a big chunk of money out of our cash flow as we couldn't meet our commitment to suppliers," he said.

"The company is likely to go into administration this week. The point of administration is to try and get the firm to trade through and come out the other side."

One worker, who did not want to be named, said staff were told on Friday they were no longer needed but to return tomorrow morning for a meeting.

The worker said: "There is not much in the way of leather manufacturing left so it will be a shame if this company is lost as well.

"Because we are in Bloxwich I think a lot of people forget about us. We did some short time in March but were back on full time again.

"The volcano caused a few problems with business and there is the recession as well, but I don't think it can all be put down to that because it is a good workforce and clients include Next and ASOS as well as Express in America, which is the US equivalent to Next."

Founded in 1987, George Stuart started life as a specialist manufacturer of high quality leather accessories. It grew steadily, becoming a leading supplier to retailers in the UK and the USA.