After 250 years, Axminster Carpets enters administration

In 1755 Thomas Whitty started making carpets the Axminster way, today the British firm announced it had entered administration and been forced to make 300 staff redundant.

The closure was blamed on a sharp increase in raw material prices, the closure of a loss making subsidiary and a slight downturn in sales - as a result of the continuing economic difficulties facing the UK.

“Trading has been difficult and although it saddens the board to make the decision to enter administration it could not be avoided,” said Axminster’s director Joshua Dutfield.

“The management have been working with key suppliers, creditors and lenders to resolve the company's financial difficulties and whilst the last few weeks have been stressful, the company managed to pay the wages yesterday. We are now committed to working with the administrators to asses all viable options for the future of the business and achieve the best possible outcome for all concerned and most importantly the staff.”

It’s a sad day for the British firm. Whitty’s original Axminster carpets were bought by King George III and used in Chatsworth House and Brighton Pavilion.

After a fire destroyed the factory halting production, Axminster carpets was reborn in 1937 – operating from the original west country base, the newly incorporated firm stuck to traditional techniques and natural materials. Even now carpets from Axminster are used in royal residences, luxury hotels, as well as in thousands of homes across the UK.

There is hope that the firm’s manufacturing facilities in Axminster and Buckfast could be saved. Some 100 employees have been retained as the administrators, of Duff & Phelps, look for a way to keep the business alive.

“We recognise the importance of the business to the local community and will be seeking to work closely with management and all key stakeholders to restructure the business where possible, including the possibility of selling all or part of the business,” said joint administrator Benjamin Wiles.

The factory outlet stores remain open for business and the company is trying to fulfil existing customer orders where possible. The main suppliers have already offered their continued support for the business during the administration.