About 130 workers are facing redundancy after the shock announcement that production at the famous Hornsea Pottery will not resume on Monday after the Easter holiday period.

The administrative receivers to Hornsea Pottery Ltd, Mike Saville and Simon Morris of Grant Thornton, told workers yesterday that it would be necessary to make most of them redundant.

The receivers were appointed on April 20. Mr Saville said this was the third time in eight days that he had spoken to the workers and while the announcement was a "huge blow" to them he did not think it was a surprise.

He added: "The decision to cease production at Hornsea has been very difficult. I am fully aware of the importance of the company to the area and the worldwide reputation of the Hornsea brand name.

"However, circumstances were against continued trading. The company has been trading at a loss now for a number of years, including a pre-tax loss of £700,000 in the nine months to January this year, with no sign of a return to profitability.

"The current market place for its products is very difficult with the strong pound benefiting cheap imports and the order book is at a low level."

Mr Saville said he had not given up hope that a buyer might be found for the operation, though he did not want to raise hopes too high.

"Even though production has ceased there will be no immediate removal of the operating assets to allow time for the receivers to hold discussions with potential purchasers," he added.

The company also has nine retail outlets around the country and a storage warehouse in Stoke-on-Trent. The retail outlets are continuing to trade.

andrew.hitchon@ycp.co.uk

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