Another UK tannery announces closure
W. Pearce & Co. of Northampton announced last week that it is to cease leather production and begin a 30-day consultation period with its employees over redundancies. The company, which incorporates Pearce Leather, Pebody Leather, Pearce Tandy Leathercraft and A J Van den Berghe, has traded in Northampton since 1908 and employs 75 people.
The Northampton tannery's demise mirrors wider events taking place in British manufacturing, which has been hit hard by foreign competition. Exports levels have also suffered because of the strong pound.
In a statement to the press issued last week, the company said that it has had to deal with continued loss making that can no longer be sustained from company reserves. Though the losses were substantially reduced last year, the entry of the company's major markets into recession earlier this year meant a massive reduction in order intake, which has not been offset by the summer season. Its problems were further compounded by the malignant effects of BSE and Foot and Mouth Disease.
W. Pearce & Co is currently in negotiations with a third party that is interested in purchasing the company's assets and taking over manufacturing at the site. If a deal can be concluded there is the possibility of a reprieve for around 25 Pearce employees.
