Economic fall shatters sales for historic crystal firm

The announcement by the company that owns the Edinburgh Crystal brand means 2,700 jobs across the UK and Ireland were put at risk.

The news came as the UK government admitted the recession would probably go on longer than predicted.

On another bad day on the high street, the doors closed at 111 branches of the children's wear store Adams, with the loss of another 850 jobs.

The remaining 160 Adams stores will stay open while efforts are made to secure a sale. Adams continues to employ 2,350 staff, and PricewaterhouseCooper, the administrator, said it was "hopeful" of being able to sell on some parts of the remaining business.

The Manchester-based perfume retailer Passion for Perfume joined the list of casualties in administration after cutting 194 jobs and closing its 45 stores across the UK at locations including Aberdeen, Plymouth, Blackpool and Wigan.

The company also traded online.

Today, Woolworths' 200 remaining stores are set to shut.

Alistair Darling, the Chancellor, had predicted that the recession would be over halfway through this year when he delivered his economic statement on 24 November.

But yesterday, Gordon Brown, the Prime Minister, refused to rule out that the recession could last two years and Lord Mandelson, the Business Secretary, also did not deny that it could be "long and painful".

Doubts had already been cast on Mr Darling's predictions the by economic experts, 67 of whom said in a recent survey that they believed the problems would continue for a year or more.

Yesterday, a Downing Street spokesman said: "The Treasury have to set out their best view, which was their best view at the time of the Pre-Budget Report. It was a view that was very much in line with the view taken by the Bank of England.

"But they also acknowledge that there is obviously uncertainty around any forecast."

The gloomy predictions come as administrators Deloitte start hunting for a buyer for Waterford Wedgwood, which is best known for Wedgwood pottery in Stoke, Royal Doulton china and Waterford crystal.

The business, which can trace its origins back 250 years, collapsed after talks over a possible sale to a US private equity firm failed and its lenders' patience ran out.

There have been suggestions that it has been struggling for several years, despite buying rivals, such as Edinburgh Crystal.

Edinburgh Crystal stopped trading two and a half years ago when it collapsed with the loss of 270 jobs. The brand was bought by Waterford Wedgwood, but most of the original business disappeared.

New product launches and more modern lines designed by the chef Gordon Ramsay and the designer Sir Terence Conran were an attempt to find new customers for Waterford Wedgwood. Sir Anthony O'Reilly, the non-executive chairman, said: "We are consoled only by the fact that everything that could have been done, by management and by the board, to preserve the group, was done."

However, the company will continue to trade as a going concern and David Sculley, the chief executive, said that he is optimistic a buyer can be found, but question marks now hang over the future of staff employed in the UK and in Ireland .

Deloitte is also acting as the administrator for Passion for Perfume. It made 185 store staff and nine in the head office redundant on Hogmanay.

The chain was owned by a Manchester-based property developer and entrepreneurs Brendan Flood, Nigel Tobias and James Michael Riddell, who launched the business in 2004, but attempts to find a buyer failed as trading conditions worsened.

There was one glimmer of hope offered on the high street yesterday after the department store business the John Lewis Partnership said it was encouraged by its performance over the festive period.

The group saw total sales rise by 2.4 per cent in the five weeks leading to 3 January, although the figure was flat on a year earlier when excluding new store openings and VAT changes.

BACKGROUND

THE recession appears to have brought the problems of the glass, crystal and china industry in the UK to a head after it has struggled for several years.

There were tears from customers and employees yesterday in the midlands town of Stoke – known as the potteries – when Waterford Wedgwood went into administration taking with it some of Britain's most famous pottery and glass names.

But even in 2006 at the height of the boom famous names in Scotland in Scotland were in trouble. Edinburgh Crystal, former suppliers to the Queen, went out of business and was sold on to Waterford Wedgwood, and Caithness Glass was also sold off.