Economic Downturn Forces Waterford Wedgewood Into Bankruptcy

January 5, 2009 1:38 p.m. EST

London, England (AHN) - Famed Waterford Wedgewood crystal and china maker has collapsed into bankruptcy forcing the company and its subsidiaries into receivership on Monday.

Trading of its stock on the Irish Stock Exchange was also suspended Monday, and similar moves were expected for the company's United Kingdom business later Monday.

In a statement Monday, company officials said the situation was created by the global economic downturn.

The iconic British firm is the latest casualty of the global economic slowdown and credit squeeze. Waterford Wedgewood employs about 7,700 people worldwide.

"Waterford, Wedgwood and Royal Doulton are quintessentially classic brands that represent a high quality product which is steeped in history," the administrators said in a statement. "The administration team will be working closely with management, customers and suppliers during this time to ensure operations continue whilst a sale of the business is sought."

Wedgewood has been operating for 250 years since it was founded by Josiah Wedgwood central England, in 1759, it began making bone china in the 19th century.

Waterford has a history of coming back from disaster, it got its start in 1783 in southeast Ireland, although that business failed in 1850, Czech immigrant Miroslav Havel revived the brand in 1947.

Waterford acquired Wedgwood in 1986 and then acquired Royal Doulton in 2005. Much of its production had moved offshore to nations such as Jakarta, Indonesia, where much of its ceramics are produced, while much of its crystal is manufactured in Eastern European nations.

Other British icons that have been forced into bankruptcy in recent months include department store giant Woolworths, the queen's own tailor Hardy Amies, tea and coffee merchant Whittard of Chelsea and other famed ceramics makers Royal Worcester and Spode.