AN ornamental glass-making firm that has provided wedding gifts for royalty was forced to make two thirds of its workforce redundant yesterday (Thursday), writes Zoe Casson.

If a buyer is not found before Cumbria Crystal, Ulverston, goes into liquidation on Tuesday, May 20, all 21 staff members will lose their jobs.

The firm is already in the hands of receivers Wilson Pitts after the managing director, Ian Dillon, put the business into voluntary liquidation last week.

The company's problems are being blamed on a large reduction in orders during the past six months but a statement issued by the receivers said it first started to have financial difficulties during the foot-and-mouth outbreak because of a decline in tourism.

The statement also said the recent economic downturn had had an impact on the firm. "The increase in National Insurance contributions and rising insurance changes have also proved unachievable for Cumbria Crystal."

Partner of Wilson Pitts, which has offices in Leeds, London, Sheffield, Hull and Kendal, Julian Pitts, said he was hoping the company would be sold as a going concern and that the 14 production staff who lost their jobs yesterday would be re-employed.

The remaining seven retail staff will be kept on until a final decision about the future of the company is made on Tuesday.

"The production of glass stopped on Thursday so the production workers had their contracts of employment terminated as there was nothing for them to do," said Mr Pitts. "These are very skilled workers so we hope if the company is bought they will be re-employed."

It is not the first time the company, formed in 1975, has been in the hand of receivers. Mr Pitts said seven years ago the company had some "financial problems" and was bought by the new owner, Ian Dillon, from the receivers.

The firm, which moved to its new premises opposite Booths supermarket in August 1999, makes high quality tableware including glasses, decanters, jugs, vases and bowls. It is the largest supplier of crystal to British embassies and also sells to Harrods, Selfridges and John Lewis.

It is believed that it is in one of the stores that Prince Edward and Sophie Rhys-Jones who announced they were expecting their first child this week - spotted the vintage champagne claret goblet and port glasses that were believed to be on their wedding list in 1999. The reports were not confirmed or denied by Mr Dillon.

Chief executive of Furness Enterprise, Harry Knowles, said he had been aware of the problem the business was facing. "We knew there had been a down-turn in orders but there has been a drop in purchases in the top end of the retail market generally, which Cumbria Crystal operates from. Manufacturing is also going though a very tough time at the moment."

Mr Knowles said Furness Enterprise was working with other partners to try to salvage part of the business. "It is not the first time we have been here because the same thing happened about seven years ago. Work is being done to try to save at least part of the business and although that is not a guarantee we will do our damnest to try and make it happen."

Ulverston town mayor Coun Dave Miller was stunned when The Westmorland Gazette broke the news. He said: "Not another one. With this on top of the redundancies at GlaxoSmithKline and BAE, it just seems like it is not going to end. My heart goes out to all those who work there."

May 9, 2003 11:30