Historic Somerset firm to close down after administrators fail to strike rescue deal

One of Somerset’s oldest firms has closed down with the loss of more than 130 jobs – according to union officials.

Leather manufacturer Pittards went into administration earlier this week and there were hopes that a buyer for the 200-year-old company could be found.

But the rescue deal failed to materialise and the company has now ceased trading.

Lucy Winterborne and Dan Hurd of EY-Parthenon’s Turnaround and Restructuring team were appointed as Joint Administrators of Pittards Plc on 4 September 2023.

Founded in 1826, the Yeovil company was a manufacturer of premium leather products and employed 135 staff in the UK and 900 in Ethiopia via its Ethiopian subsidiaries – which are not currently in administration.

A statement from the administrator said: “Extensive discussions were held with an interested party to achieve a sale of the company’s business and assets but, unfortunately, the prospective buyer was unable to conclude an agreement with its debt funder to allow a sale to proceed.

“As no other party has expressed an interest in acquiring the business, the company has now ceased to trade with immediate effect and sadly, the majority of the company’s UK employees have been made redundant.

“The Joint Administrators will assess options over the coming days to realise value for the company’s creditors and wind down the company’s business. Employees that are affected by redundancy are being offered appropriate advice and support in making claims for redundancy and notice pay and will receive information from Jobcentre Plus for help with finding employment, claiming benefits and improving skills. ”

The factory was closed on Monday and staff were sent home after the administrators took over the business.

The company, which was founded in 1826, said the recent pound crash, rising interest rates and inflation have caused serious problems.

The listed company raised doubts about its future in July after failing to raise the £1m it said was needed to continue trading.

Gavin Miller, Community Union’s National Officer for Light Industries, said: “The news of liquidation will come as a hammer blow to the workforce at Pittards, for the town of Yeovil and the wider county of Somerset which has been so closely associated with glovemaking and leather manufacturing over the course of centuries.

“Community stands ready to support our members at Pittards in any way we can during this difficult and worrying time. “

He added: “Pittards is by no means an isolated case, but rather a product of the incredibly difficult trading conditions facing manufacturers and SMEs across the country at the moment.

“At a time when the sector has needed a proactive government to give it the help it needs through difficult times, there has been a vacuum – particularly when it comes to the key issues of inflation rises and energy bills. The sad turn of events at Pittards demonstrates clearly why the country needs a robust and comprehensive industrial strategy now more than ever.”