Rescue plan needed for Axminster Carpets to avoid the chop

Posted on 21 Feb 2013 by Tim Brown

Devon-based Axminster Carpets, which has been producing carpets for over 250 years, is currently exploring rescue and restructuring options following a "difficult" period of trading caused by competition from cheaper imports.

The company will continue to trade but the company’s board of directors has confirmed that a notice of intention to appoint administrators has already been filed. The notice was filed in order to provide the Company and its creditors with a moratorium period during which the various rescue options being explored can continue.

The notice of intention to appoint administrators has nominated Benjamin Wiles, Geoff Bouchier and David Whitehouse of Duff & Phelps as Joint Administrators.

The Company’s Director, Joshua Dutfield, said recent trading had been poor but the management has been working with key suppliers, creditors and the lenders in an attempt to resolve the Company’s financial difficulties. “We continue to be committed to working to achieve the best possible outcome for all concerned and most importantly the staff and suppliers,” he said.

About 400 workers could lose their jobs if the company, awarded a royal warrant last year, is shut down.

According to the most recent accounts filed with Companies House in 2010, Axminster had debts of about £12m, with a £7m pension deficit.