Making Employees Redundant To Save Your Business
Making Employees Redundant To Save Your BusinessDenby Pottery In Administration Today
Published on : 16th March, 2026
Update 31th March. The company has officially entered into administration with potential buyers lined up.
Renowned pottery manufacturer Denby has confirmed plans to appoint administrators after facing significant financial pressures in recent years.
The Derbyshire-based company, which was founded in 1809, has been a well-known name in British ceramics for more than two centuries. The business was previously rescued in 2009 when it was acquired by investment firm Hilco Capital.
In a statement released on Thursday, The Denby Group confirmed it had filed a notice of intention to appoint administrators, describing the move as “a precautionary measure”. The company said it had been unable to secure a suitable investment partner despite exploring a range of options.
According to the company, a combination of reduced demand, rising employment costs and sharply higher energy prices has placed increasing financial strain on the business. Denby also said that tighter financial markets had made it more difficult to access new funding.
“While Denby has explored a range of options, it has not yet been able to secure a strategic investment partner aligned with the long-term vision and values of its historic British brands much loved by their large global fan base,” the statement said.
“The search for a suitable partner will continue whether for the Denby Group as a whole or for the brands individually.”
The company added that the notice of intention provides short-term protection from creditor action while it continues to explore funding and restructuring options.
It confirmed that Denby and its subsidiary Burgess and Leigh will continue trading during this period, along with the company’s international subsidiaries.
‘A worrying time’
Following the announcement, union representatives said the situation would be concerning for employees.
GMB union organiser Craig Thomson said it was a “worrying time” for Denby workers.
“Denby pottery is a British icon, producing some of the world’s finest ceramics,” he said.
“This is a worrying time for workers across Denby. We are working closely with our members and reps on site.
“Britain’s ceramics industry is the envy of the world.
“We must now see urgent government action on energy prices to support the sector through this time of turbulence.”
Derbyshire Labour MP Linsey Farnsworth also said she had held an “urgent meeting” with the company and had been in contact with the GMB union.
Farnsworth, who represents Amber Valley in Derbyshire, said: “Denby remains a world-class, viable manufacturer that continues to trade and meet demand.
“I am acting as a direct link between the company and the Department for Business and Trade to ensure every possible avenue is explored to secure a positive outcome for Amber Valley.”
2025 and 2026 have been a difficult years for the industry. Royal Stafford also went into administration in February (2025). Other closures include Dudson (2019), Wade (2023), and Johnsons Tiles (2024).
Readers Guide To the Administration Process
As Denby enters formal insolvency, stakeholders often face significant uncertainty. Here is a breakdown of the legal framework and what it means for those affected.
1. What is a “Basic” Administration?
Administration is a powerful statutory process governed by the Insolvency Act 1986. It is triggered when a company is insolvent and can no longer meet its debts. An independent Licensed Insolvency Practitioner (IP) is appointed to take control from the directors. A key feature is the statutory moratorium—a legal “shield” that instantly stops all legal actions, such as winding-up petitions or bailiff visits, providing the “breathing space” needed to rescue the business or achieve a better result for creditors than immediate closure.
2. Who Gets Paid First?
The law dictates a strict hierarchy for the distribution of funds. Fixed charge holders (typically banks with security over property) are paid first. Once the administrator’s fees are covered, preferential creditors are next; this includes employees (for specific arrears) and HMRC for taxes like VAT and PAYE. Following these are floating charge holders, and finally, unsecured creditors—which include trade suppliers and customers—who are at the back of the queue and frequently receive only a small fraction of their debt.
3. What Happens to Employees?
Entering administration does not mean all jobs are instantly lost. For the first 14 days, the administrator assesses the company’s viability and may make redundancies. If a member of staff is kept on past this 14-day window, the administrator “adopts” their contract, meaning their ongoing wages and rights become a priority expense. Those made redundant can claim for unpaid wages and notice pay via the Redundancy Payments Service if the company has insufficient assets to cover these costs.
4. What About Suppliers and Customers?
Suppliers and customers are generally unsecured creditors. Suppliers should stop granting credit under old agreements and negotiate “pro-forma” (upfront) terms for any new supply to the administrator. For customers, deposits and gift cards are rarely honoured. However, those who paid over £100 via credit card may be protected under Section 75 of the Consumer Credit Act and should contact their bank immediately to initiate a claim.
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