SIGNIFICANT interest has been shown in a glass-making firm which could go into liquidation next week - including a possible management buy-out by staff, reports Zoe Casson.

Cumbria Crystal in Ulverston is in the hands of Wilson Pitts receivers and is due to go into voluntary liquidation on Tuesday.

Last Thursday, 14 members of staff were made redundant from the firm, which is blaming its problems on a large reduction in orders during the past six months, and production of ornamental glass was stopped.

If a sale of the business is not agreed by Tuesday, the remaining seven staff will also lose their jobs, as the retail part of the businesses will shut.

But Harry Knowles, chief executive of Furness Enterprise, which is fighting to save the company, said there had been enough interest to give him confidence that something positive could be done with Cumbria Crystal. "We are confident that all or some of the business will be saved, but there are no guarantees," he said.

If a buyer is found for the firm, which makes high-quality tableware including glasses, decanters and jugs as well as being the largest supplier of crystal to British embassies, it is hoped that all 21 employees will be reinstated.

Julian Pitts, partner of Wilson Pitts, which has offices in Leeds, London and Sheffield, Hull and Kendal, confirmed about ten parties had shown an interest in buying the glass firm which has provided wedding gifts for royalty including the Earl and Countess of Wessex.

"We are in discussions with a number of parties who have expressed an interest," he said. "One possibility we are looking into is the employees purchasing the business either in conjunction with someone else or on their own. We have also sent out numerous information packs to other interested buyers."

It will not be the first time the 28-year-old company has been rescued. In 1996 Ian Dillon bought the company from the receivers after it experienced financial difficulties.

Mr Pitts said the company, which moved into its new premises in August 1999, could still be sold even if a buyer is not found before the company goes into liquidation. "There will be more practical problems the longer it goes on such as keeping the furnaces going, but legally I am able to still sell the business.

"At the moment, it is early days but with the amount of interest so far we are quite confident that we will be able to sell the company's assets and Cumbria Crystal will be able to carry on."

May 16, 2003 09:30