Britain’s battered retail sector was last night reeling from two new blows as a historic crystal and china maker went into administration and a children’s clothing company axed over 100 stores.
The collapse of Waterford Wedgwood has left 2,700 jobs at risk in the UK and Ireland, while 850 staff at Adams shops – including branches in Inverness, Elgin and Stirling – were made redundant.
Manchester-based Passion for Perfume – which had an outlet in Aberdeen – also joined the list of big-name casualties in administration after cutting 194 jobs.
And there was bad news for house buyers as it emerged lenders are demanding deposits of up to 40%.
As Prime Minister Gordon Brown insisted the measures he and Chancellor Alistair Darling unveiled to tackle the global economic crisis would pay off, he was accused by Tory leader David Cameron of failing to grasp the full impact of the credit crunch.
Mr Brown said the lesson of earlier recessions was that “not only must governments act early to prevent lasting damage to economies, but that an economic slowdown must not be an excuse to slow down the pace of investment and reform to strengthen our country for the future”.
But Mr Cameron said he felt like “shaking” the prime minister and telling him to admit it was not working.
The row broke out as administrators Deloitte sought a buyer for Waterford Wedgwood, best known for Wedgwood pottery, Royal Doulton and Waterford crystal.
The firm, which can trace its origins back 250 years, collapsed after talks over a possible sale to a US private equity firm failed and its lenders’ patience ran out.
Deloitte said the company will continue to trade as a going concern and chief executive David Sculley said he was “optimistic” a buyer can be found.
The UK business employs around 1,900 retailing and manufacturing staff, including 600 at its manufacturing base in Barlaston, Stoke-on-Trent. Its Irish arm has about 800 staff in Waterford.
Adams’ administrator PricewaterhouseCoopers (PwC) said yesterday’s job losses were “inevitable” as stores were closed at locations which included Glasgow, Leeds, Blackpool, Coventry, Bolton and Wigan.
The remaining 160 Adams stores will stay open during efforts to secure a sale.
Adams still employs 2,350 staff, and PwC was “hopeful” of selling the business.
Adams was founded in Birmingham in 1933 by Amy Adams and celebrated its 75th anniversary last year.
The group’s collapse is the latest in a string of company failures. Woolworths, music and entertainment chain Zavvi, and MFI have gone into administration.
Passion for Perfume made staff redundant on New Year’s Eve. It traded online and at 45 stores in the UK.
Manchester-based property developers and entrepren-eurs Brendan Flood, Nigel Tobias and James Riddell launched the chain in 2004.
But there was glimmer of cheer on the high street as department store business John Lewis said it was encouraged by its festive sales performance.
The group saw total sales rise 2.4% in the five weeks to January 3, although the figure was flat on a year earlier when excluding new store openings and VAT changes.
John Lewis said fashion sales were 4% higher, while electricals and home technology improved by 10%.