LUXURY GOODS company Waterford Wedgwood introduced further management changes yesterday ahead of a Cabinet discussion today on its request for Government guarantees over €39 million in new loans.
There is considerable doubt that the Government will agree to provide State support to the heavily-indebted and loss-making company, although it was pointed out that Ministers will have to examine the political impact of the loss of 500 jobs if its crystal factory at Kilbarry in Waterford closes down.
Unable to raise additional money from its banks due to the covenants on its existing loans, Waterford Wedgwood has made it clear to the Government in recent weeks that the provision of a guarantee is a "vital element in the retention of Waterford Crystal in Ireland".
Less than a month after the abrupt departure of Waterford Wedgwood chief executive Peter Cameron, the company notified the market yesterday that Wayne Nutbeen has resigned as chief of its Royal Doulton unit "to pursue other business interests".
Moira Gavin has been promoted to succeed Mr Nutbeen in the role of president and chief executive of the Royal Doulton/Wedgwood ceramics group. She has responsibility for global design, marketing and selling.
"Moira has a key role to play as we put together the team to take this firm to profitability," said the interim chief of Waterford Wedgwood, David Sculley.
Ministers are fearful that providing a State guarantee would invite further claims for support from Waterford Wedgwood if its current business plan does not work out. In addition, they are fearful of setting a precedent which would be followed by claims for State support from other companies that encounter trading difficulties in their business.
However, Waterford Wedgwood maintains that the provision of a Government guarantee for bank loans to support crystal manufacturing in Waterford makes "sound economic sense" for the State.
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