Update: 300 jobs cut as Axminster Carpets goes into administration
Around 300 staff of Axminster Carpets have been made redundant after the company went into administration.
It comes after the company announced two weeks ago that it was exploring a variety of rescue and restructuring options as the carpet sector continues to suffer a downturn in demand.
Benjamin Wiles, Geoffrey Bouchier and David Whitehouse, of Duff & Phelps, have now been appointed joint administrators.
While they continue to seek a buyer for the business, the administrators have decided to downscale the carpet manufacturing operations and cease yarn production.
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As a result, approximately 300 employees have been made redundant at the company's Axminster and Buckfast sites, while 100 employees have been retained by the administrators.
The factory outlet stores remain open for business as usual and the company has said it will attempt to fulfil existing customer orders where possible.
Its main suppliers have offered their continued support for the business during the administration.
Company director Joshua Dutfield said: "Trading has been difficult and although it saddens the board to make the decision to enter administration it could not be avoided.
"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."
Mr Wiles added: "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."
Any creditors or customers with queries, or anyone interested in buying the business, can contact Duff & Phelps by emailing AxminsterCarpets@duffandphelps.com.