Death knell for clothing factory

Feb 2 2008 by Karen Dent, The Journal

ONE of the last textile manufacturers in the region has gone into administration.

Dewhirst Accessories in Blyth, which employs around 68 manufacturing staff and was once part of the giant Dewhirst empire, is also understood to have shed dozens of agency staff in the past year as business dried up.

Workers were told yesterday morning that their contracts had been terminated with immediate effect.

BDO chartered accountants has been appointed as the joint administrator of the Kitty Brewster industrial estate-based firm.

According to the GMB union, which represents more than 40 staff at the factory, there had been no interest in the textiles side of the operation, which took on short runs from clients such as Barbour and Burberry.

The company also made giftware packaging for clients such as Boots and British Airways.

It is understood the administrator has been working with the Dewhirst Accessories’ management for around a month but had only received a single expression of interest from one potential buyer interested in its British Airways contract.

Lee Ions, regional GMB organiser, said: “The administrator said they were looking to sell it as a going concern but unfortunately no one has expressed an interest. There was still work there, though there had been difficulty in getting more.

“The company has had big difficulties opening new doors. They did have a number of irons in the fire but they have not come to fruition.”

Mr Ions said staff were “absolutely devastated and shell-shocked” and he wants to set up a meeting with the administrators as soon as possible. “I want to know why we weren’t informed before this happened,” he said.

The business had employed a high number of agency staff but they have been trimmed back, Mr Ions added.

Coun Dave Stephens, leader of Blyth Valley Borough Council, said the local authority would be looking to help those affected. “I will be speaking to the council’s regeneration officer. We will get the action team for jobs involved.

“Dewhirst has been part of the core industry in Blyth for many years now.

“Marks & Spencer and other companies sourcing from abroad really hit the British textile industry. This is just another nail in the coffin. With the likes of Primark selling shirts for £1, £2, £3 and Asda selling complete suits for around £30, it’s difficult to compete. It’s terrible when things like this happen. It’s horrendous, the impact this will have on the families.”

The Dewhirst group sold Dewhirst Accessories for £2.35m in 2005. At the time, it employed more than 120 people. A year ago, around 140 people were working at the Blyth business – many on temporary contracts due to the seasonal nature of packaging manufacture, which tends to peak in the run-up to the festive season.

Despite repeated calls to BDO, the administrator failed to respond to inquiries from The Journal.

Blame: Dewhirst blames cheap fashion brands such as Primark (modelled above) for jobs moving away from UK.

Closing: The Dewhirst factory, which used to have a contract with Burberry. Kate Moss, left, models Burberry clothes.