Hundreds of jobs put at risk at historic Somerset firm

Hundreds of jobs have been put under threat at one of the oldest firms in the South West.

The board at leather manufacturer Pitttards has announced that they are intending to call in the administrators at the Somerset firm.

The Yeovil company is more than 200 years but it has been put up for sale in recent months as it struggled to deal with rising costs and a fall in demand.

But due to pressure from creditors the listed company has now taken the decision to file a notice of intention to appoint administrators.

A statement on the Stock Exchange confirmed the news that could potentially lead to the loss of 200 jobs.

The statement said: “On 27 July 2023 the Company announced that it was considering all its strategic options for the benefit of its stakeholders which could include an orderly sale of the business and assets of the company.

“Whilst a sale process of the business and assets of the company has been initiated, due to the group’s current financial uncertainty and in light of increased creditor pressure, following discussions with its advisors the board has regrettably resolved to file a notice of intention to appoint Ernst & Young LLP as administrators to the company as soon as reasonably practicable.

“The board is taking this action to protect the interests of its creditors.”

Last month the company cancelled a fundraise after it failed to reach the necessary target.

Leather manufacturer Pittards was hoping to raise £1m to stave of the threat of administration.

But the sale of the shares only managed to raise £329,049 and the scheme was cancelled.

Pittard’s was founded in 1826 and is part of the rich history of leather manufacturing and glove-making in the Yeovil and Somerset area.

The company employs around 200 people in the South West and 1,000 in Ethiopia.

Pittards manufactures leather products for third parties as well as its owned Daines & Hathaway and Hill & Friends brands.

Last month the company agreed terms on a restructure of its £10m debt facilities with Lloyds Bank.

However, the loan agreement is dependent on the firm being able to carry out a successful equity raise.

Trading in the company’s shares is currently suspended, pending publication of the final results for the year ended 31 December 2022 which in light of recent events have been delayed indefinitely.