One of the oldest manufacturers of porcelain and bone china became the latest victim of the credit crunch yesterday after going into administration.

Royal Worcester, established in 1751, said it had no choice but to call in bankers after failing to agree a rescue. The move leaves 388 jobs in the balance and comes weeks after the collapse of Hardy Amies, the Savile Row tailor and dressmaker to the Queen.

Royal Worcester, whose main factories are in Stoke and Worcester, sells earthenware and china products through its own shops and in department stores such as Debenhams and John Lewis. It received the Royal Warrant in 1789. Recent products include ranges of tableware and kitchenware endorsed by Laurence Llewelyn-Bowen and Jamie Oliver.

Matthew Hammond, joint administrator at PricewaterhouseCoopers, said: “Management have been trying to restructure the business and over the last six to twelve months they have suffered a decline in sales not unlike other operators exposed to the retail and consumer sectors.”

He added: “The business has a great heritage, a great product range, a Royal Warrant, and while we cannot guarantee a sale we will do all we can.”

About 30 retailers have called in administrators this year, including Dolcis, MFI and ScS Upholstery. There are forecasts that about 100,000 high street jobs may be lost by the end of 2009.

Gary Oakes, deputy general secretary of the Unity union, said: “They have been looking round for a buyer for a while and they have had cash-flow problems. We’re hopeful the jobs will be saved – it’s a business with a very long pedigree.”

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