The Denby Group of companies in the UK filed for administration on March 31, appointing FRP Advisory to manage the process, following a notice of intention to appoint administrators filed on March 11 as a precautionary measure. Denby has not been able to secure strategic investment partners to take the business forward. Sebastian Lazell, the CEO of Denby, said he is trying to move heaven and earth to save the business but has to be realistic that there may not be a happy ending.
Denby's financial challenges are due to rising costs, including energy and employment costs, low consumer confidence, and reduced demand. Denby's turnover fell by 17% in its most recent financial year, which was 2024. Denby's annual energy costs increased from around £1.25 million before 2022 to between £2.5 million and £3 million recently, highlighting the severe impact of rising energy prices on the business.
The notice of intention to appoint administrators gives the company protection from creditors for 10 days to explore options. Denby secured an extension to the notice of intention, giving it a new deadline of April 8 to secure its future, but this deadline passed without a successful rescue, leading to the administration filing.
Denby employs over 500 people, with about 600 workers in total. About 80 workers have been made redundant from Denby as part of the initial restructuring efforts. Denby will continue trading, fulfilling orders online and in-store as normal during administration, ensuring that customer operations are maintained while the sale process is underway.
International subsidiaries of Denby in Korea, the USA, and China are not in administration and will continue to operate normally, as the administration only affects the UK-based operations of the group.
Denby has launched a #SaveDenby campaign to mobilize public support, aiming to raise awareness and potentially attract buyers or investors through grassroots efforts.
Denby is one of Britain's most beloved and enduring pottery brands, with a heritage spanning more than two centuries and a loyal following across the UK and internationally. While it is disappointing that the group has been unable to secure the investment needed to continue as a going concern, the strength and recognition of these brands is undeniable. We are focused on progressing the sale process as quickly as possible, and we would encourage any interested parties to come forward without delay.
Tony Wright, joint administrator of the Denby Group, said Denby is one of Britain's most beloved and enduring pottery brands and they are focused on progressing the sale process as quickly as possible to preserve the business and its heritage.
A spokesperson for the Denby group said that while Denby has explored a range of options, it has not yet been able to secure a strategic investment partner aligned with its long-term vision, despite extensive efforts over recent months.
Craig Thomson, GMB Organiser, said Denby pottery is a British icon and this is a worrying time for workers, calling for urgent government action on energy prices to help struggling manufacturers like Denby survive the current economic pressures.
MP Linsey Farnsworth said she is focused on trying to ensure the stability of this vital local employer and protecting the livelihoods of its workforce. East Midlands Mayor Claire Ward said she is working closely with MP Linsey Farnsworth to make a case for intervention from the government to save Denby as an important part of heritage and manufacturing in the region.
A government spokesperson said regular meetings are held with industry trade association Ceramics UK and trade unions, and they recognize the challenges potteries and ceramics businesses face, though specific actions or interventions have not been detailed publicly.
The specifics of strategic investment partners approached or currently in discussions with Denby are not publicly known. The exact number of redundancies made so far is unclear beyond the initial 80 reported. Government actions or interventions, if any, are also uncertain, with no concrete measures announced to date.
The timeline or likelihood of a sale of Denby or its brands during the administration process is another unknown, as administrators work to find a suitable buyer. The amount of public support generated by the #SaveDenby campaign, in terms of financial contributions or sales, has not been quantified, making its impact on the rescue efforts unclear.