Denby Pottery: Historic Derbyshire pottery frim on brink of collapse issues statement – as company enters pre-administration with 500 jobs at risk

Denby Pottery, a historic Derbyshire-based pottery firm, filed a notice of intention to appoint administrators on Wednesday, March 11.

The notice protects the company from legal action by creditors for 10 days giving the firm the time to appoint an administrator in a bid to save the company.

The Denby Group has dubbed the move as a “precautionary measure” after their attempts to find a suitable investment partner were unsuccessful – with the company admitting that the increasing employment and energy costs paired with reduced demand were among reasons behind the financial struggles.

Denby Pottery, launched in 1809, is a Derbyshire staple and is renowned for producing “some of the world’s finest ceramics” over the last two centuries.

The company, which employs over 500 people, previously faced financial difficulties in 2009, before it was bought by Hilco Capital in 2010.

A spokesperson for Denby Group said: "As Denby expanded internationally and strengthened the brand at home through the 2010’s and early 2020’s the business went from strength to strength growing sales and profitability.

“However, challenging market conditions in the last 3 years with reduced consumer confidence softening demand for premium but less essential purchases, combined with escalating costs of employment in the UK and soaring industrial energy costs without as yet government support for the energy intensive ceramics sector, have all squeezed the business financially.

“While Denby has explored a range of options, it has not yet been able to secure a strategic investment partner aligned with the long-term vision and values of its historic British brands much loved by their large global fan base.

"The search for a suitable partner will continue whether for the Denby Group as a whole or for the brands individually.

“However, as a precautionary measure, and to provide a period of stability while these options continue to be assessed, the Denby group of companies in the UK has filed a notice of intention to appoint administrators.

"This step offers short-term protection to allow the business to explore potential funding and restructuring solutions in an orderly manner.”

The spokesperson has confirmed that Denby and Burgess & Leigh are continuing to trade while all options for the future of the companies are

being explored.

International subsidiaries such as Denby Korea and Denby USA continue to trade as normal at this time.

The spokesperson added: “The priorities remain supporting employees, customers, suppliers, and retail partners while working with advisers to determine the best possible outcome for all stakeholders.”

GMB union, representing workers at Denby Pottery Group, has responded to the news, calling for government to step in and save the support the ceramics industry.

Craig Thomson, GMB Organiser, said: “Denby pottery is a British icon, producing some of the world’s finest ceramics.

“This is a worrying time for workers across Denby. We are working closely with our members and reps on site.

“Britain’s ceramics industry is the envy of the world. We must now see urgent government action on energy prices to support the sector through this time of turbulence”.

Linsey Farnsworth, Labour MP for Amber Valley, has held an urgent meeting with the Denby’s leadership to discuss the current situation and ensure voices of employees are heard.

She said: “Following the announcement from the Denby Group, my focus is on trying to ensure the stability of this vital local employer and protecting the livelihoods of its workforce.

"I have already held an urgent meeting with Denby’s leadership to discuss the current situation and determine how I can best support through this process. I have also been in contact with GMB union representatives to ensure that the voices of the employees are heard during this period of uncertainty.

!Having previously raised the specific pressures facing the ceramics sector, particularly industrial energy costs, both in Parliament and directly with ministers, I will continue to advocate for the support Denby needs at a ministerial level.

“I am actively engaged with the Treasury and the Department of Business and Trade.

“Denby remains a world-class, viable manufacturer that continues to trade and meet demand. I am acting as a direct link between the company and the Department for Business and Trade to ensure every possible avenue is explored to secure a positive outcome for Amber Valley."