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Deal struck to save Axminster Carpets

A rescue deal has been done to save Axminster Carpets from collapse.

A consortium, including Centric Commercial Finance Ltd and led by private investor Stephen Boyd, has taken over the business from administrators.

The company confirmed that the remaining 100 employees at Axminster will keep their jobs. The two outlet stores are also secure and have been transferred to the new company.

The Devon firm went into administration in March, leading to the loss of three hundred jobs.

The newly formed business, now called "Axminster Carpets (2013) Ltd" will involve many of the senior management team and will begin trading on Monday 8th April 2013.

Axminster Carpets Credit: ITV Westcountry

Axminster Carpets will retain 100 staff in downscale

Carpet firm Axminster will keep just 100 staff after deciding to downscale the company's carpet manufacturing operations at Axminster and Buckfast.

It will also end yarn production but two factory outlet stores will remain open.

Trading has been difficult and although it saddens the board to make the decision to enter administration it could not be avoided.

The management have been working with key suppliers, creditors and lenders to resolve the company's financial difficulties and while the last few weeks have been stressful, the company managed to pay the wages yesterday.

– Axminster director Joshua Dutfield

The company, which warned last month that it would go into administration, is one of the world's largest makers of Axminster, Wilton and Tufted carpet.

It is one of Devon's biggest employers and its plight prompted more than 6,000 people to sign a petition calling for it to be saved.

The company wants to fulfil existing orders while its main suppliers have offered their continued support for the business.

The original Axminster carpet was laid in Brighton Pavilion, while the firm's products were bought by King George III and Queen Charlotte, and are found in UK stately homes.

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300 workers made redundant at Axminster Carpets

Some 300 workers have been made redundant at carpets firm Axminster after the company entered administration.

It means three-quarters of the workforce at the Devon-based company lost their jobs.

The company, which dates back 250 years, blamed a sharp increase in raw material prices and the UK's continuing economic difficulties for the decision to go into administration.

Restructuring firm Duff & Phelps, which has been appointed to run the firm, said it will continue the company's search for a buyer but said it had been necessary to make around 300 staff redundant.

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