Centuries-old pottery firm Denby set to call in administrators

Almost 600 jobs could go amid higher cost of gas and labour and softening consumer demand

Denby is set to call in administrators, putting the 217-year-old Derbyshire pottery at risk of closure with the loss of almost 600 jobs.

The company, which was rescued from administration in 2009 by the restructuring experts Hilco and also owns the Burleigh brand, based in Stoke-on-Trent, is understood to have struggled with the surging cost of gas, higher labour costs, tighter financial markets and softening consumer demand for its premium homeware.

Earlier this month, Sebastian Lazell, the chief executive of Denby, told BBC News he was “trying to move heaven and earth” to save the business.

A #SaveDenby campaign was launched in an attempt to encourage people to buy more products and to lobby the government to provide support.

Denby was set to appoint administrators from FRP on Tuesday but is expected to continue to trade while a buyer is sought.

Manufacturers and lobby groups have said that surging energy costs caused by the US-Israel war on Iran are compounding already tough conditions for Britain’s factories, and are likely to mean deep cuts and closures.

Denby’s most recent accounts, from 2024, show sales fell 17% to £18.6m while pre-tax profits slumped to £86,000 from £460,000 a year amid “the multitude of geo-political and inflationary economic impacts”.

Craig Thomson, an organiser for the GMB union, which represents pottery workers, said: “This is the human cost of government inaction: communities let down and workers laid off by companies that can’t keep up with the cost of energy.

“There is a very real sense of fury amongst the Denby workers receiving this news today. We’ve been screaming and shouting about the impact the cost of industrial energy is having on the ceramics industry for years. Now the time for warm words is over, and ministers must decide if they want a British ceramics industry or not.

“Denby is a British icon with history dating back over 200 years. We’ve been working closely with the local MP and residents to make the case that its future is too important to be left to chance.

“GMB is focused on doing everything we can to support and protect these workers during this difficult time”.

The problems at Denby come a year after the Stoke pottery Royal Stafford – which first manufactured products in 1845 and was best known for its production of earthenware – called in administrators, followed by the neighbouring pottery Moorcroft in May.

A string of consumer goods companies have also fallen into administration this year owing to lacklustre consumer spending and rising costs.

On Tuesday, administrators for the jewellery chain Claire’s, who were appointed in January, said they had closed 15 of its 154 stores and cut more than 100 jobs, including at its head office, as they continued to try to find a buyer.

In a report, they said they did not expect to pay out to unsecured creditors, including suppliers, landlords and staff, who are collectively owed £10.6m.They added it was likely that the private equity firm Modella, which has secured debts of £5.5m, would receive at least some cash.