Waterford Wedgwood
Encyclopedia
Waterford Wedgwood plc is the former holding entity for a group of companies headquartered in Ireland
, which specialised in the manufacture of high quality china, porcelain and glass. The group was dominated by Tony O'Reilly
and his immediate family, and the family of Mr. O'Reilly's second wife, Chryss
, the two families together having had invested hundreds of millions of euros in it. Its financial record had been mixed, and significant cost-cutting had been ongoing for many years. In 2009, parts of the Group, including the main Irish and UK operations, were placed in receivership and were acquired by the New York-based private equity firm
KPS Capital Partners
.
and Wedgwood
, to create an Ireland-based luxury brands group. After the 2009 purchase by KPS Capital, Wedgwood became part of a group of companies known as WWRD, an acronym for "Waterford Wedgwood Royal Doulton."
The firm traced its heritage to the 1780s. The group's constituent companies were Waterford Crystal
, with brands including Waterford, Marquis by Waterford and a number of Waterford-designer cooperations, Wedgwood
(Josiah Wedgwood and Sons), with the range of Wedgwood brands, and English Royal Doulton
. The group also licenced its brands to other companies.
of Waterford Wedgwood PLC, announced that Waterford Wedgwood had been put into receivership
after the heavily-indebted firm had failed to find a buyer.
Union members organised and occupied the Dublin offices lobby and the Kilbarry Plant protesting the withdrawal of credit lines by The Bank of America and threatened 480 redundancies. Their aim, according to blogger, Fiona Harrington "to either have the company nationalised, or to maintain it as a going concern until a buyer can be found."
On February 27, 2009, Waterford Wedgwood's receiver, Deloitte, announced that the New York-based private equity firm
KPS Capital Partners
had purchased "certain Irish and UK assets of Waterford Wedgwood and the assets of several of its Irish and UK subsidiaries" in a transaction expected to completed in March.
176 out of the threatened 480 jobs were saved, although the deal did not include the Waterford site.
Up to 5 January 2009, the Board of Directors comprised the below, many having served for a decade or more:
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
, which specialised in the manufacture of high quality china, porcelain and glass. The group was dominated by Tony O'Reilly
Tony O'Reilly
Sir Anthony Joseph Francis O'Reilly is an Irish businessman and former international rugby union player. He is known for his involvement the Independent News & Media Group, which he led from 1973 to 2009, and as former CEO and Chairman of the H.J. Heinz Company. He was the leading shareholder of...
and his immediate family, and the family of Mr. O'Reilly's second wife, Chryss
Chryss Goulandris
Chryss Goulandris, Lady O'Reilly , also known as Christina or Chryssanthie, is one of the richest women associated with Ireland, and holds both USA and Greek citizenship, she owns a major horse breeding operation located in Ireland, France and other countries and has been Chairperson of the Irish...
, the two families together having had invested hundreds of millions of euros in it. Its financial record had been mixed, and significant cost-cutting had been ongoing for many years. In 2009, parts of the Group, including the main Irish and UK operations, were placed in receivership and were acquired by the New York-based private equity firm
Private equity firm
A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital...
KPS Capital Partners
KPS Capital Partners
KPS Capital Partners is a private equity firm focused on control investments in middle-market companies through special situations transactions such as turnarounds, restructurings, bankruptcies, and corporate divestitures...
.
History
The company was founded in 1987 through the merger of Waterford CrystalWaterford Crystal
Waterford Crystal is a trademark brand of crystal glassware, previously produced in Waterford, Ireland, though the factory there was shut down after the receivership of Waterford Wedgwood plc in early 2009...
and Wedgwood
Wedgwood
Wedgwood, strictly speaking Josiah Wedgwood and Sons, is a pottery firm owned by KPS Capital Partners, a private equity company based in New York City, USA. Wedgwood was founded on May 1, 1759 by Josiah Wedgwood and in 1987 merged with Waterford Crystal to create Waterford Wedgwood, an...
, to create an Ireland-based luxury brands group. After the 2009 purchase by KPS Capital, Wedgwood became part of a group of companies known as WWRD, an acronym for "Waterford Wedgwood Royal Doulton."
The firm traced its heritage to the 1780s. The group's constituent companies were Waterford Crystal
Waterford Crystal
Waterford Crystal is a trademark brand of crystal glassware, previously produced in Waterford, Ireland, though the factory there was shut down after the receivership of Waterford Wedgwood plc in early 2009...
, with brands including Waterford, Marquis by Waterford and a number of Waterford-designer cooperations, Wedgwood
Wedgwood
Wedgwood, strictly speaking Josiah Wedgwood and Sons, is a pottery firm owned by KPS Capital Partners, a private equity company based in New York City, USA. Wedgwood was founded on May 1, 1759 by Josiah Wedgwood and in 1987 merged with Waterford Crystal to create Waterford Wedgwood, an...
(Josiah Wedgwood and Sons), with the range of Wedgwood brands, and English Royal Doulton
Royal Doulton
The Royal Doulton Company is an English company producing tableware and collectables, dating to 1815. Operating originally in London, its reputation grew in The Potteries, where it was a latecomer compared to Spode, Wedgwood and Minton...
. The group also licenced its brands to other companies.
Financials
Sales for the year to April 5, 2008 were 671.8 million euros, down 9.4% year-on-year. Losses were 231.1 million euros, up from 71.3 million euros in the previous year. On 2 April 2008, the CEO, Peter Cameron (previously COO, and prior to that CEO of acquisition All-Clad), resigned, and was replaced by David Sculley. Operational costs were reduced, with around 4,000 jobs removed or in the process of being removed between early 2005 and late 2008. In October 2008, the shares fell to .001 euro cent . Following the failure of the 2008 share issue and the subsequent defaulting of bank covenants by the company in December 2008, Tony O'Reilly, Jr stated in January 2009 that the company was in advanced negotiations with a US private equity company concerning a rescue package, which would result in the bulk of the company's production moving away from the UK and Ireland to Indonesia (where the company already has some production facilities. On January 5, 2009, David Sculley, chief executive officerChief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of Waterford Wedgwood PLC, announced that Waterford Wedgwood had been put into receivership
Receivership
In law, receivership is the situation in which an institution or enterprise is being held by a receiver, a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights." The receivership remedy is an equitable remedy that emerged in...
after the heavily-indebted firm had failed to find a buyer.
Union members organised and occupied the Dublin offices lobby and the Kilbarry Plant protesting the withdrawal of credit lines by The Bank of America and threatened 480 redundancies. Their aim, according to blogger, Fiona Harrington "to either have the company nationalised, or to maintain it as a going concern until a buyer can be found."
On February 27, 2009, Waterford Wedgwood's receiver, Deloitte, announced that the New York-based private equity firm
Private equity firm
A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital...
KPS Capital Partners
KPS Capital Partners
KPS Capital Partners is a private equity firm focused on control investments in middle-market companies through special situations transactions such as turnarounds, restructurings, bankruptcies, and corporate divestitures...
had purchased "certain Irish and UK assets of Waterford Wedgwood and the assets of several of its Irish and UK subsidiaries" in a transaction expected to completed in March.
176 out of the threatened 480 jobs were saved, although the deal did not include the Waterford site.
Former directors
Following the resignations on 5 January 2009 of the Chairman, Senior Independent Director, Lady O'Reilly and a former CEO, and of further directors on the 8th and 9th, and the departure of John Foley, the Board of Directors comprises the below. All resigning directors have also resigned from subsidiary boards.- Peter Goulandris, Deputy Chairman
- David W. Sculley, Group CEO from 1 August 2008, Interim Group CEO (from 2 April 2008), partner in a New York investment firm
- Anthony Jones, CFO (from November 2007)
- Mark Downie, Company Secretary
- Lord Wedgwood
- Jonathan (Jon) H. Kagan (Lazard)
- Ali E. Wambold (Lazard)
Up to 5 January 2009, the Board of Directors comprised the below, many having served for a decade or more:
- Sir Anthony (Tony) O'Reilly, Chairman
- Peter Goulandris, Deputy Chairman
- Lady Chryss O'Reilly (née Goulandris)
- David W. Sculley, Group CEO from 1 August 2008, Interim Group CEO (from 2 April 2008), partner in a New York investment firm
- Anthony Jones, CFO (from November 2007)
- Mark Downie, Company Secretary
- Dr. F. Alan Wedgwood
- Lord Wedgwood
- John Foley, CEO of Waterford Crystal
- Kevin McGoran, Chairman of Waterford Crystal and Fitzwilton plc
- Ottmar C. Kusel, CEO of Rosenthal AG
- (P.) Redmond O'Donogue, Group CEO until 31 August 2005
- Patrick J Molloy, senior independent director
- Jonathan (Jon) H. Kagan (Lazard)
- Ali E. Wambold (Lazard)