Dublin/London - Iconic china and crystal manufacturers Waterford Wedgwood Monday joined the growing list of high-profile corporate failures when it announced that its business in Ireland and Britain had been placed into administration. The Anglo-Irish group, with a history of 250 years, is best known for its Wedgwood pottery, Royal Doulton china and Waterford crystal.
It said receivers had been appointed to its business in Ireland, which is based in Waterford, in the south of the Irish Republic, and in Stoke-on-Trent, in the county of Staffordshire in central England.
A total of 2,700 jobs in Ireland and Britain are at risk following Monday's announcement.
Waterford Wedgwood became an increasingly global player following the merger of Irish company Waterford Crystal with Britain's Wedgwood brand in the late 1980s.
Its overseas subsidiaries, which remain unaffected by Monday's announcement, currently employ 5,800 staff at factories in the United States, Germany, Canada, Australia, Japan and Indonesia.
Analysts said, in addition to the effects of the credit crunch and tighter lending, the Irish-based company had been hit hard by the recent rise in the value of the euro, which affected profitability in its largest market, the United States.
The firm said it called in the administrators after protracted talks with a US private equity firm over a rescue deal had collapsed. However, chief executive David Sculley said he remained "optimistic" that a buyer could be found.
Administrator Deloitte said Monday that a restructuring of the firm could not be achieved "in an acceptable timescale" as trading deteriorated.
Joint administrator Angus Martin of Deloitte said Monday that everything would be done to find a buyer to save the famous brand.
"Waterford, Wedgwood and Royal Doulton are quintessentially classic brands that represent a high quality product which is steeped in history," Martin said.
"The administration team will be working closely with management, customers and suppliers during this time to ensure operations continue whilst a sale of the business is sought."
Waterford made a pre-tax loss of 63.2 million euros (80 million dollars) in the six months to the beginning of October 2008, and carried net debt of 448 million euros.
The firm was also hit by a decline in consumer spending resulting from the credit crunch, leading to a 19-per-cent drop in sales in October compared to the same month in 2007.
Wedgwood was founded in 1759 in Stoke-on-Trent by Josiah Wedgwood, and began making bone china in the 19th century. Crystal maker Waterford was set up in 1783 by brothers William and George Penrose.
In 1986 Waterford acquired Wedgwood to form the present company, listing on the stock exchange and expanding overseas in the 1990s before buying Royal Doulton in 2005.
In December, the company announced its withdrawal from the London Stock Exchange, ending its dual listing in Dublin and London.
