85 jobs on brink as HJ Berry administration imminent

AN historic Preston-based furniture manufacturer, which featured in a television programme with entrepreneur Sir Gerry Robinson, has ceased trading and is on the brink of administration.

HJ Berry and Sons, based in Chipping, ceased trading on Monday and is expected to enter formal administration later today or Monady at the latest, having made its application to court yesterday afternoon.

The family-owned business, which employs 85 staff including 60 skilled craftsmen, collapsed with debts of £3.5m – HM Revenue and Customs is under stood to be the major creditor.

In a last ditch attempt to save the firm, director Andrew Berry had suggested in a letter to staff that they could invest in a new employee-owned company, through an Employee Benefit Trust.

However, it is understood that the existing company would still have had to go through the administration process if this were to happen.

The letter, sent to staff on Monday, also reassured them that measures were being taken to protect the employees and former employees who live in residential properties owned by the company.

Mark Getliffe at Manchester-based CLB Coopers has been providing advice to the company regarding its insolvency and will be appointed its administrator.

Finding a buyer could be difficult as a result of the company’s commitments to a £9m final salary pension scheme.

It is possible that some jobs could be saved if the company is broken up with certain parts being sold off.

H J Berry has traded since 1840, and is the oldest chair manufacturer in England. However, it has increasingly struggled to compete with cheap imports and has also been hit by the strength of the euro.

Last year, Sir Gerry Robinson offered the firm £1m for a 60% stake as part of Channel 4’s Gerry’s Big Decision programme. The firm declined the offer as the deal offered little upfront equity.