Jobs axed as leather firm put in administration

A WALSALL leather goods manufacturer has gone into administration with the loss of 35 jobs.

Administrators from Ernst & Young were called in to George Stuart Holdings and George Stuart in Bloxwich on Wednesday.

The firm has blamed its demise on the recent volcanic ash cloud crisis, which closed European airspace for days at a time, and played havoc with its supply of raw materials.

George Stuart designs and manufactures belts and other accessories for major high street retailers, for both UK and overseas markets.

The administration was at the request of the directors of the business. Hopes are that the business and its assets can be sold on as a going concern.

However, half of the 70-strong workforce has already had to be made redundant.

Tom Lukic, joint administrator with Ian Best, said: “The business has suffered in recent months from raw material supplier issues as a direct result of the volcanic ash cloud.”

The administration is the second blow to Walsall – the traditional home of the UK leather industry – in as many days following on from the announced closure of Highgate brewery.

George Stuart was founded in 1987 and began life as a specialist manufacturer of high quality leather accessories. It grew steadily, becoming a leading supplier to retailers in the UK and the USA.

While many UK leather goods firms succumbed to competition from volume manufacturers in Asia, George Stuart opted to focus on the luxury section of the market.

It established a reputation for high quality goods with a fast turnaround. The business has its own design and sampling team which works with retailers to turn new ideas into concepts.

It also set up a dedicated online shop that allowed retailers to order the belts they wanted, when they wanted them and in quantities to suit their needs.
 
The system allowed leading retailers to react far quicker to changing trends and stock the goods people wanted to buy.

In 2007 the business secured new investment to enable it to grow the business.

However, the fashion and retail sector has been one of those hardest hit by recession, with sales of new clothes falling considerably.

The situation was not helped by the extraordinary events in April when the ash cloud grounded flights across the continent causing the firm major supply problems.