Hopes of a breakthrough at Waterford Wedgwood were raised on 6 February 2009 as five-way talks began between the group“s receiver, its workers, two bidders and the Irish government.
The crystal and …
Hopes of a breakthrough at Waterford Wedgwood were raised on 6 February 2009 as five-way talks began between the group“s receiver, its workers, two bidders and the Irish government. The crystal and china manufacturer“s banks placed it in receivership on 5 January 2009 after it failed to make loan repayments on time. On 30 January, receiver David Carson of Deloitte was forced to shut down manufacturing at its Irish plant in Waterford with the loss of 480 jobs after he ran out of cash. The move triggered a sit-in protest at the plant. It is understood that on 6 February 2009 the two US firms, KPS Capital and Clarion Capital, representatives of the union Unite, and the government were holding talks with Mr Carson and each other. The talks prompted speculation that a deal on the sale of the group to either KPS or Clarion is imminent, or that operations could resume at the Kilbarry, Waterford, facility shortly. The two bidders have met both the unions and government to outline their proposals for the business, and they have held discussions with Mr Carson, who is seeking a buyer for the group. Clarion was at the Waterford site in the first week of February, carrying out due diligence as part of the bid process. The meeting on 6 February was the first time that the bidders, union and government have held simultaneous talks. KPS and Clarion are bidding for the entire group, which includes Waterford Crystal in Ireland, Wedgwood and Royal Doulton china manufacturers in Britain and Rosenthal Porcelain in Germany. Clarion“s bid also involves former Waterford Crystal chief executive John Foley. He stepped down from the role in January 2009 in the week after Mr Carson was appointed and KPS announced its interest. Clarion has a track record of working with and investing in manufacturers of high-end consumer goods. KPS specialises in investing in manufacturers which are insolvent or carrying heavy debt burdens. Some reports have suggested that local politicians and the trade union favour the Clarion bid as they believe it has the greater commitment of the two to keeping manufacturing in Waterford. However, KPS is understood to be prepared to take a one-year option on the Irish plant, and is likely to keep about 300 jobs. Clarion will employ about the same number of people, according to some reports. Both bidders are interested in the group“s intellectual property, including its brands, trade marks, patents and manufacturing processes. Waterford Wedgwood“s liabilities exceeded its assets by over EUR 330 million when the banks appointed Mr Carson in early January 2009. Its former executive chairman, Sir Anthony O“Reilly, and his brother-in-law, Peter Goulandris, own 52% of the group. They invested EUR 400 million in the business. Both men resigned from the board after Mr Carson was appointed.