Axminster Carpets saved from closure
PUBLISHED: 15:07 05 March 2020 | UPDATED: 21:46 05 March 2020
Axminster Carpets, which went into administration last month with the loss of 80 jobs, has been rescued.
A group of UK private investors, industry leaders and members of the Dutfield family, which founded the firm in 1937, has ensured that the business will remain in the town.
The move comes just weeks after Axminster Carpets Ltd went into administration, making 80 workers redundant.
The business, which had built debts of nearly £8million, is now well funded and debt free.
Robert Day, who is leading the private investors, told The Herald: "The business has never been in a better position to again become a significant player in this sector.
"There is a plan to implement an employee ownership model so that the local people who have worked hard over some difficult years can feel part of the resurgence of this proud company."
Joint administrator Benjamin Wiles, of Duff and Phelps, said: "We are absolutely delighted to be able to announces today that we have secured the future of Axminster Carpets, one of the best known British brands, following the successful sale of the business and assets of the company.
"The swift conclusion of this process has enabled Duff and Phelps to secure the future of the business. This deal will provide a stable financial platform, ensuring its long-term viability."
Working with Axminster Carpets new owners, Ulster Carpets has invested in the Axfelt underlay plant in Axminster and Wilton Flooring has secured the lease on the factory outlet shop.
A spokesman said that these combined initiatives will ensure employment opportunities for the skilled workforce on site and allow the carpet business to focus on its core point of difference in the luxury flooring market.
If you value what this story gives you, please consider supporting the Midweek Herald. Click the link in the orange box below for details.