Buy-out may cut it for Caithness

Caithness Glass will be sold as a going concern

There are hopes a possible management buy-out could rescue the beleaguered Caithness Glass, now in receivership.

Up to 150 jobs are under threat if the company, which has sites in Wick, Perth and Oban, goes to the wall.

But local Highland councillor David Flear hopes a takeover by the workers can save it extinction.

Meanwhile, the company's receivers are confident it can be sold as a going concern after already receiving six offers from UK companies.

Master glass-makers

Accounts Deloitte have been called in by Caithness owners Royal Worcester and Spode, which bought the firm in 2001.

Caithness Glass was founded in Wick in 1961 and is well known for producing the distinctive trophy presented to the winner of the BBC television quiz series Mastermind.

It has a world-wide reputation and the news has come as a shock to Wick and the other town's affected by the possibility of closure.

Despite the bad news Wick's local Highland councillor, David Flear, is hopeful the company can be saved but fears for his town's future if it does go out of business.

Management buy-out

He said: "I would hope for something like a management buy-out could be considered.

"I have already spoken to the enterprise company and have set up a meeting with them next week to look if there is anyway that the council and the enterprise company can help solve this problem.

"Caithness is a major employer. I have real concerns about Wick and Wick's continuing viability to attract businesses in with major businesses like Caithness Glass possibly not going to be here."

However, receiver John Reid is confident that Caithness will survive.

He said: "We've had six parties to date registering interest, all drawn from various different parts of the United Kingdom.

"We are therefore quite confident we will find a purchaser for the business."

Founding father

Local MP John Thurso's father founded the company more than 40 years ago and said he would try to safeguard the company's future.

My great concern is for the workforce John Thurso MP

Speaking on BBC Radio's Good Morning Scotland programme, he said it "was a sad day".

"My great concern is for the workforce, particularly in Wick where Caithness Glass is one of the major employers in the area," the MP said.

"The only comfort is that the receiver has said he intends to sell the business as a going concern and one can only hope that someone will purchase the businesses and keep them going."

Mr Thurso said he would hate to see the company, which has an annual turnover of £6m, close down.

"Unemployment is running at about 7% in Wick - in contrast to the other side of the county in Thurston, where unemployment is nearer 3%. Wick needs work," he said.

Going concern

Worcester and Spode blamed the downturn in the company's fortunes on difficult conditions in the ceramic and glassware industry.

A spokesman for Worcester and Spode said: "In these circumstances the directors have been left with no alternative but to appoint receivers.

"It is the intention to sell the business as a going concern."