320 jobs lost in Derbyshire as Courtaulds enters administration

Some 350 jobs have been axed at a clothing firm which has a major manufacturing base in Belper, Derbyshire.

Dilip Dattani and Patrick Ellward of RSM Restructuring Advisory have been appointed joint administrators of the CUK Clothing and Courtaulds brands.

The companies manufacture and supply branded and private label clothing to retailers in the United Kingdom and internationally. Its products include hosiery, socks, bras, underwear, nightwear, formal and casual wear, jackets and coats. The companies employ around 380 staff in Derbyshire and London.

Administrators say the main reason for the demise of the companies is impact of the the administration of BHS, a major customer, and the declining volume of sales and profitability over the recent period.

Dilip Dattani, RSM partner and one of the joint administrators said: ‘The administration of BHS has added to the challenge of operating within a fiercely competitive market for seasonal products.

“This has left the directors with little choice but to place the companies into administration.

Regrettably, we have been forced to make 350 employees redundant to align with the current order book, and we are assisting them with their claims to the Redundancy Payments Service. We are currently engaging with the key customers to assess their ongoing orders and delivery schedules.”

Of the 350 redundancies, there are 320 in Derbyshire, 4 in Nottingham and the rest in London