UK luxury leather company Connolly has been forced to pull out of its 50% owned US operation, Connolly North America, after liquidation proceedings began on Friday (November 30). The company is also to cut 100 workers at the centre of its UK operations in Ashford, Kent. The reduction comes only two years after the company moved from Wimbledon with the loss of a further 100 jobs.

Consultant Martin May was appointed in March, 2001 to organise the restructuring of the family company, which was established over 120 years ago. He said that Connolly was removing itself from the volume business and intended to concentrate on niche markets, mainly car and aircraft manufacturers.

Connolly is one of the best known names in the UK leather industry and supplies upholstery for Concorde aircraft. Mr May said that the company would make a loss for the year, but added that now restructuring is progressing, next year would see a return to profitability.