He said Artisan, set up in 1992, could not compete with Italian and Spanish manufacturers. An additional pounds 2.5m closure costs from asset write-downs will come from Artisan, which made bathroom and kitchen tiles.
Mr Regan said he hoped to find work elsewhere in the group for about a third of the 95-strong workforce.
The news of the closure came with Spring Ram's results for the six months to 2 July. It made a loss before tax of pounds 1.1m, sharply lower than the pre-tax figure of pounds 36.4m in the comparable period. Last year's results were depressed by exceptional costs. Spring Ram made underlying operating profits of pounds 2.2m at the halfway stage compared with a loss of pounds 4.8m.
Regency Doors, the group's most serious loss-maker, is expected to return profits in the second half of 1995 and the following year. Like Artisan, Regency was a greenfield start-up by Spring Ram's previous management.
Spring Ram's two older established businesses - the manufacture and supply of kitchens and bathrooms to retail outlets - improved profitability. Kitchens operating profits were pounds 6m, up from pounds 4.7m, while the bathrooms side made a profit of pounds 100,000 against losses of pounds 3.2m last time.
The loss per share was 0.3p (loss 10.4p) and there is no dividend.Reuse content