Chancellor Rachel Reeves’ UK economy may have claimed one of the nation’s oldest potterers after it collapsed with rising energy bills and lack of government support blamed.
Royal Stafford, based at the Royal Overhouse Manufactory in Burslem, Stoke-on-Trent, called in administrators on Tuesday with the loss of 83 jobs – with workers told to pack up and leave.
The brand was established in 1845 but records indicate Royal Overhouse was in use in 1787 and operated by Thomas Wedgwood – meaning the site has a 238-year pedigree in ceramics.
Shocked employee Robert Morley, also a GMB union rep, said his heartbroken colleagues were “devastated” and “gutted” by the move – and they knew nothing until locks had been changed.
Mr Morley fumed: “I wasn’t working that day. But I got a phone call that said everyone’s been told to get their stuff and get home. They could have let us know, but we got nothing. No information, nothing.
“We knew we was struggling, but for the receivers to go and to shut the gates – terrible. I jumped in my car and drove straight up there. But by the time I got there, a lot of the members had gone.”
Royal Stafford said it had faced a dramatic reduction in orders and, along with energy price rises, it could not afford to continue to trade.
The company’s collapse followed the closure in Stoke-on-Trent of Dudson in 2019, Wade in Longton two years ago, and Johnsons Tiles last year.
Stoke-on-Trent has been shaped by the pottery industry for over 300 years and is affectionately known the world over as ‘The Potteries’.
From small-scale beginnings in the mid seventeenth century, the abundance of coal and clay meant that the pottery industry grew and became rooted in the area.
The industry flourished through revolutionary ideas and the development of ceramic manufacturing techniques by Master Potters such as Wedgwood and Spode – with Stoke-on-Trent once hailed as the World Capital of Ceramics.
Mr Morley said workers were handed letters minutes before a voice on the factory’s receiver communication system asked staff to go home.
The union said it blamed spiralling energy bills as well as the illegal importation of foreign forgeries, which was driving down orders in the UK.
Mr Morley said the government needed to intervene and help the pottery industry, adding: “The pottery industry can’t afford all the price hikes. Why hasn’t the government come in and tried to help?
“We couldn’t keep it going with the price of the energy – it was killing us. Something’s got to be done. There’s going to be no pots left in Stoke-on-Trent.”
A GMB union spokesperson said the firm’s collapse was a “wake-up call” for the government and its industrial strategy.
Colin Griffiths, from the GMB, warned Britain could lose its ceramics and pottery industry without government intervention.
He added: “Our ceramic and pottery industry is vital for economic growth and supports thousands of jobs across the UK.”
A Royal Stafford spokesman said: “It is with great sadness that the directors announce the closure of RST Limited, which trades as Royal Stafford, with immediate effect.
“The company has faced a dramatic reduction in orders in recent months and coupled with the increase in energy prices this has left it unable to afford to continue to trade.
“The company has traded as a manufacturer and retailer of tableware from its Burslem factory since 2007, when its current owners bought the business and assets of Royal Stafford Tableware Limited.
“The Royal Stafford brand was established in 1845, and the company was one of the few remaining traditional pottery manufacturers in North Staffordshire.
“The closure of the factory has resulted in the redundancy of 83 employees, many of whom have worked for the company since 2007 and some who worked for Royal Stafford Tableware prior to that.
“The directors have pursued every avenue possible to save the business, but without the guarantee of a profitable forward order book, this was not possible.
“The directors have engaged the services of insolvency firm Moore Recovery to place the company into liquidation. Creditors of the company will be contacted by Moore Recovery in due course.
“A closing down sale is planned and further information regarding this will be provided when possible. Anyone who has orders to collect from the factory shop will also be contacted in due course.”
A spokesperson for Moore Recovery said a closing down sale was planned and more information about this would be shared “when possible”.
“The directors have pursued every avenue possible to save the business but without the guarantee of a profitable forward order book, this was not possible,” they added.
Meanwhile a spokesperson for Stoke-on-Trent City Council said their priority was supporting the firm’s employees and would help with benefits advice, CV writing, job searching and interview techniques.
The council’s leader Jane Ashworth, will write to Royal Stafford’s owners to request an urgent meeting.
They added: “We know that national factors including high energy bills have made things more difficult for local employers but we are committed to improving our economy.
“This includes major plans for Burslem, involving the regeneration of the town as part of a multi-million pound city-wide package of public realm improvements.”