The collapse of Waterford Wedgwood, the 250-year-old fine china and glassware maker, leaves 2,700 jobs at risk and its owner, Sir Anthony O’Reilly, the Irish media tycoon, millions of pounds out of pocket.

The ailing company, which includes the Royal Doulton brand, announced yesterday morning that it had been taken into receivership, joining the growing roll call of corporate failures.

Deloitte, the accountancy firm, was appointed as administrator of Waterford Wedgwood’s UK subsidiaries. The company employs 1,900 people in the UK, chiefly at its manufacturing operation at Barlaston, Stoke-on-Trent, at retail stores and other offices as well as 800 staff in the Republic of Ireland.

The company’s collapse leaves Sir Anthony, who also owns the media group Independent News and Media, facing millions of pounds of losses unless Deloitte can find a buyer quickly.

Partners from Deloitte said that it was too early to say how many jobs were at risk. Last night they were locked in talks with a potential bidder – believed to be a US private equity investor – but no announcement is expected today. It is believed that the administrator has had nine other expressions of interest in the company.

The company had to appoint Deloitte after it missed a January 2 deadline to meet loan repayments. It has debts of €449 million (£415 million) and had been trying to raise cash from investors since the summer.

Wedgwood – best known for its bone china – has become a byword for world standards in tableware design and manufacturing over more than two centuries. But the company has endured tough times since it was purchased by Waterford Glass Group in 1986, as formal dining trends gave way to more relaxed habits and cheaper competitors.

Six years of losses drove Wedgwood to move all major ceramics production to the industrial outskirts of Jakarta, the Indonesian capital. Last month it was announced that only a small number of high-end products – hand-painted figurines and the iconic blue-and-white china – would continue to be made in England. Waterford Crystal – an Irish glassware brand whose chandeliers hang in Windsor Castle and Westminster Abbey – has also suffered dramatically.

Unless a buyer can be found for the business, Sir Anthony and his brother-in-law, Peter Goulandris, the Greek shipping magnate, are facing big losses after bailing out Waterford Wedgwood last year, leaving them with a combined stake of nearly 60 per cent.

The company had posted nearly six years of operating losses and had struggled to raise cash during last year’s credit squeeze. The January 2 deadline represented the third postponement by its lenders. The group posted a widening loss of €63 million during the six months to October 4 – the latest period for which figures are available.

A spokesman for Waterford Wedgwood said that a further 5,000 staff at subsidiaries in Germany, the US, Canada, Australia and at a manufacturing plant in Indonesia were not directly affected by the announcement yesterday. Sir Anthony, who is also grappling with €1.4 billion of debts at Independent News & Media, said: “We are consoled only by the fact that everything that could have been done, by management and by the board, to preserve the group was done.”

Redmond O’Donoghue, Waterford Wedgwood’s director, paid tribute to him and Mr Goulandris yesterday. Mr O’Donoghue said that the two men had invested some €400 million of their own money into the company in the past four years, to no avail.

“It’s an enormous sum of money. Only six weeks ago they put in €60 million,” Mr O’Donoghue said. “It was quite clear in the last weeks that that investment, all of it, was gone.”

As well as axing thousands of jobs, Waterford signed up stars such as the chef Gordon Ramsay and the designer Sir Terence Conran to launch more modern lines. It also introduced Wedgwood’s Eternity China, which can be used in microwaves and dishwashers. But the company suffered from funding issues and was weighed down by the cost of its restructuring efforts.

8,000 employees, 600 stores, 670 years of tradition

The parent company: Waterford Wedgwood

Employees: 8,000 worldwide (1,900 in the UK and Irish Republic) Stores: 597 (164 in the UK and Irish Republic) Turnover: £628m

The key brands: Waterford

Founded in Waterford in 1783 by brothers William and George Penrose, the original company closed in 1851. Reformed in 1947 by Czech émigrés Karel Bacik and Miroslav Havel Manufactures hand-blown glass and fine cut and engraved lead crystal Example: the Cranmore Nine Arm Chandelier (£2,900) Factory in Waterford City employing 800 is only manufacturing location in the British Isles Acquired Wedgwood in 1986 and Royal Doulton in 2005

Wedgwood

Founded in 1759 in Stoke-on-Trent by Josiah Wedgwood. His family remained involved in the company for more than 150 years Produces tableware, including the Queen’s Ware and Jasper ceramic ranges, as well as giftware and figurines Example: the Celestial Platinum Covered Vegetable Dish (£159.53) Manufactures some products in Barlaston, employing 600 workers. Most ceramics produced in Indonesia

Royal Doulton

Founded in London in 1815 by John Doulton with Martha Jones and John Watts Makes traditional British tableware, figurines, crystal, glass and giftware Example: China figurine of Lawrence of Arabia on camelback (£9,787.23) Almost all products manufactured in Indonesia since Staffordshire factory closed in September 2005

Sources: Waterford Wedgwood, Wedgwood Museum, Times archives, agencies

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