Denby, a renowned pottery manufacturer with a 217-year history, has ceased production due to the inability to secure a buyer. The company, headquartered in Ripley, Derbyshire, entered administration in late March. Former CEO Sebastian Lazell attributed the closure to escalating energy expenses, leading to unsustainable financial losses.
Administrators from FRP Advisory, tasked with managing the company, disclosed ongoing negotiations concerning certain business segments. Unfortunately, efforts to find a purchaser for the manufacturing divisions fell through, prompting the administrators to make the tough call to shut down the production and design departments. This decision will result in an additional 49 job cuts, following an initial 80 reported layoffs earlier in the month.
Tony Wright, the joint administrator overseeing Denby Group at FRP, expressed empathy for the affected employees and their families, recognizing the hardship this development brings. Despite exhaustive attempts, a buyer for the manufacturing operations could not be secured, necessitating the regrettable outcome. Discussions with interested parties regarding other facets of the business are ongoing, with a focus on supporting affected staff through the transition.
Craig Thomson, a representative from GMB union, condemned the loss of skilled workers at Denby, emphasizing the company’s significance in producing top-tier ceramics. He vowed to advocate for the employees and resist the expedited job terminations, urging government intervention to prevent the collapse of this British institution.
Denby prides itself on its “made in England” legacy, crafting a wide range of products like dinnerware, bakeware, and cookware. Major retailers such as John Lewis, Lakeland, and Dunelm are among its clientele. The latest financial records from 2024 revealed challenging market conditions, leading to increased annual losses totaling £4.6 million. Denby employed 536 individuals as of the end of 2024.
Sebastian Lazell, the Denby CEO, expressed his earnest efforts to salvage the business while acknowledging the possibility of an unfavorable outcome. He called for government support in extending energy cost relief to the ceramics industry promptly. The company operates three large gas-fired kilns continuously to produce its pottery, with energy costs doubling since 2022 due to rising oil and gas prices exacerbated by the Iran conflict.
The escalating energy expenses have added strain to energy-intensive businesses, compounding the financial challenges faced by Denby. The disruptions in the energy market have further heightened the urgency for support measures to sustain operations in the ceramics sector.