ROYAL Worcester, the porcelain firm which once employed about 1,000 workers in the city, has gone into administration.

PricewaterhouseCoopers confirmed it had been appointed administrator to Royal Worcester & Spode yesterday following the failure to sell its site in Stoke-on-Trent and the current economic downturn.

A new buyer is being sought in earnest.

It is not yet known if any of the 388 people employed by the company in the UK have lost their jobs, but it comes just days after hundreds of city jobs were lost at HS Printers – previously trading as Goodman Bayliss – and BizzEnergy after they both went into administration.

Administation at Royal Worcester does not affect the Museum of Worcester Porcelain, which is an entirely separate entity legally, physically and financially.

Your Worcester News previously reported how Royal Worcester & Spode had been undertaking a restructuring – financed by its principal shareholder of the last 20 years Alan Finden-Crofts and its bankers Burdale Financial – since 2003.

However, rumours the company was looking for a rescue buyer were denied at the end of September.

Matthew Hammond, joint administrator and partner at PricewaterhouseCoopers, said the restructuring – which included reducing overheads, changing to more cost-effective outsourcing of production, relocating warehouses, new product development, and the sale of property to reduce debt – had ultimately not been enough.

He said: “Our immediate priority is to review all options and immediately seek a buyer. We will work with suppliers, employees and customers to try and ensure a solution is found.

“We are working with all stakeholders and will be continuing to use the company’s extensive retail network and store concessions to supply customers with the full range of products, which are in good supply.”

Royal Worcester & Spode sources, manufactures and sells earthenware and china products from three operational sites in the UK and one site in North America.

The firm has a bestware shop, a seconds shop, offices and some hand-painters working at its city premises.

The US trading subsidiary is not affected and accountants say the two arms will continue to work together.