Royal Worcester placed in administration

The Queen's pottery supplier, Royal Worcester, is verging on collapse.

The historic porcelain maker, which has a Royal Warrant to supply the Queen and also produces crockery for the chef Jamie Oliver, has been placed into administration as a result of the economic downturn, putting 388 jobs in peril.

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Administrators Pricewaterhouse Coopers (PWC) is hoping the firm's US autonomous trading arm, the Royal China and Porcelain Companies, will rescue the business.

Royal Worcester was formed in 1751 by a group of local businessmen, with the guidance of physician Dr John Wall, and became one of the iconic names in British pottery, along with Royal Doulton.

But in recent years it has struggled to compete with cheaper foreign imports despite a merger with the prestigious china-maker Spode and a series of licensing deals with celebrities such as Oliver and the TV presenter Laurence Llewelyn-Bowen.

A spokesman for Jamie Oliver said he was "saddened" by the company's collapse. "We believe they are a great British company with quality products and a passionate staff," he said.

"We have worked closely with them for eight years and it is our hope that a buyer can be found to keep Royal Worcester in business through these difficult times and for many years to come."

Two years ago Royal Worcester shifted more production from Worcester to Stoke-on-Trent and abroad and laid off 250 workers last summer, blaming tough trading conditions.

Matthew Hammond, of PricewaterhouseCoopers, said: "The company has been undertaking a restructuring of its business in recent years. This has included reductions in overhead, transition to more cost effective outsourcing of production, relocation of warehousing, new product development and the sale of property to reduce debt.

"However, the inability to complete the proposed sale of a site of strategic importance in Stoke and the effect of the current economic downturn on sales has led to the decision by the directors of Royal Worcester & Spode to place the company into administration."

He added: "Our immediate priority now is to review all options for the company and immediately seek a buyer for the business."