Waterford receiver hopes firm can be sold

WATERFORD WEDGWOOD receiver David Carson hopes a deal for the sale of the troubled group can be done shortly. Mr Carson is still in separate talks with two US bidders, private-equity funds Clarion Capital and KPS Capital.

He was forced to shut down production at the firm’s Irish headquarters in Kilbarry, Waterford on Friday, with the loss of 480 jobs.

The move sparked a sit-in protest by workers, who were still occupying part of its showroom and visitors’ centre last night. They have vowed not to leave until manufacturing at Waterford re-starts. The group’s lenders, including Bank of America, appointed Mr Carson of Deloitte in Dublin after it failed to meet repayments due on its bank loans.

It has since emerged the receiver borrowed a further €8 million to keep the business trading, but that cash ran out last week, forcing him to shut operations in Waterford.

Yesterday, a spokesman for the receiver confirmed he was still in discussions with a number of bidders and said he “anticipates an early conclusion” to those talks. A trade union source also said workers and their representatives are optimistic a deal will be done.

It is understood the bidders are seeking to buy the entire group, which comprises Waterford Crystal, Wedgwood and Royal Doulton china manufacturers in Britain and Rosenthal porcelain in Germany.

Clarion emerged as a potential buyer last week, and met both Mr Carson and representatives of trade union Unite to outline its proposals. The New York-based investment firm only made a formal bid late on Saturday, and continued its talks with Mr Carson yesterday.

KPS signalled its interest in buying Waterford Wedgwood shortly after the group’s banks placed it in receivership a month ago. It also met trade union representatives to discuss its plans.

Any deal would secure around 300 of the 700-plus jobs in Waterford. It is not known what impact a sale would have on the group’s British and German operations.

Following Unite’s talks with Clarion last week, the union’s officials said they were cautiously optimistic the company would keep manufacturing in Waterford.

KPS has said it would initially take an option in maintaining the Waterford facility for a year, and was primarily interested in the group’s intellectual property assets, which would include its brand names, product designs and manufacturing processes.

Unite’s regional secretary, Jimmy Kelly, was in Dublin yesterday at the Government-trade union talks on national recovery.

Trade unions are hoping that a pension protection scheme, which would protect private sector workers from the loss of money invested in retirement schemes, will form part of a new deal.

Waterford Wedgwood’s pension fund was €111 million in the red last October. This would primarily affect its Irish workers, as their British counterparts benefit from state-backed pension protection.

Waterford Wedgwood’s liabilities are €330 million more than its assets. Former chairman Sir Anthony O’Reilly and his brother-in-law Peter Goulandris, who own 52 per cent of the group, have directly guaranteed €40 million of its debts and placed €25 million on deposit as a guarantee for further liabilities.