Staff made redundant at iconic glovemakers - as Pittards fails to secure buyer
Joint administrators were in advanced-stage talks earlier this week to preserve the business' heritage and safeguard the jobs of its UK and Ethiopian employees
Last updated 7th Sep 2023
Yeovil's last glovemaker has officially begun winding-down proceedings after the firm's joint administrators failed to secure a rescue deal.
The future of Pittards was put into doubt last month, after they announced their intention to call in administrators - but back in August confirmed they were still trading.
However, their situation became ever more bleak earlier this week, as they announced Ernst & Young had been brought in as joint administrators, who at the time, revealed they were in advanced-stage talks with a potential buyer to save the company, and its employees.
Unfortunately for its UK-based staff, now the rescue bid has fallen through, more than 130 jobs have been lost after the deal failed to materialise.
A statement from the administrator said: “Extensive discussions were held with an interested party to achieve a sale of the company’s business and assets but, unfortunately, the prospective buyer was unable to conclude an agreement with its debt funder to allow a sale to proceed.
“As no other party has expressed an interest in acquiring the business, the company has now ceased to trade with immediate effect and sadly, the majority of the company’s UK employees have been made redundant.
“The Joint Administrators will assess options over the coming days to realise value for the company’s creditors and wind down the company’s business. Employees that are affected by redundancy are being offered appropriate advice and support in making claims for redundancy and notice pay and will receive information from Jobcentre Plus for help with finding employment, claiming benefits and improving skills.”
Pittards has been an iconic part of the town for nearly 200 years, and of course is steeped in Yeovil's DNA, with the local football club being nicknamed The Glovers.
Despite the last remaining store being open until just this week, the art of glove making used to be Yeovil's biggest trade, with more than 30 factories making them in the town at one time.
This history now, and for the final time, will now disappear from Yeovil for good.
Gavin Miller, Community Union's National Officer for Light Industries, told Greatest Hits Radio: "The news of liquidation will come as a hammer blow to the workforce at Pittards, for the town of Yeovil and the wider county of Somerset which has been so closely associated with glovemaking and leather manufacturing over the course of centuries. Community stands ready to support our members at Pittards in any way we can during this difficult and worrying time.
"Pittards is by no means an isolated case, but rather a product of the incredibly difficult trading conditions facing manufacturers and SMEs across the country at the moment. At a time when the sector has needed a proactive government to give it the help it needs through difficult times, there has been a vacuum - particularly when it comes to the key issues of inflation rises and energy bills. The sad turn of events at Pittards demonstrates clearly why the country needs a robust and comprehensive industrial strategy now more than ever."
The hope for a buyer
Back in August, Yeovil's MP Marcus Fysh called for a ramping-up of efforts to make sure the glovemaker survived.
Over the past few months, bosses have been hinting at a wider downturn in the economy hindering their prospects of survival, however.
Lucy Winterborne and Dan Hurd of EY-Parthenon’s Turnaround and Restructuring team were brought in earlier this week, on 4 September.
Founded in 1826, the company currently employs 150 staff in the UK and 900 in Ethiopia via its Ethiopian subsidiaries. These are currently not in administration.
At the time, Lucy Winterborne, Joint Administrator at EY-Parthenon, said: “Pittards has been one of the UK’s leading manufacturers of leather goods for over 100 years, but a difficult retail environment saw the Company suffer a substantial reduction in demand in 2022 due to customer overstocking.
"This had a significant impact on the Company’s profitability and cash flow.
“We are working hard to conclude a sale of the business and hope to provide more certainty in the coming days."