Biffo turns us down

decies

Govt refuses to back Waterford Crystal loan
Tuesday, 20 May 2008 18:04
The Government has turned down a request from Waterford Crystal for a State-guaranteed loan to help it stay in business, RTÉ News has learnt.

The troubled glassmaker, which is one of the biggest employers in the southeast, had asked the Government to underwrite a bank loan of €39m.

It is understood the Government hired consultants which advised on the issue.

AdvertisementThe Government has indicated to the company any future requests for aid will be sympathetically examined.

Waterford Crystal has been one of Ireland's best know brands since the 18 Century, but the economic downturn and the recent collapse of the dollar has threatened its future.

In recent weeks it made a request to the Government for financial aid.

It is understood that the money would have been used to finance a restructuring of the company. That plan has included laying off 490 staff.

But this evening it has emerged that the request has been turned down.

The Government has however indicated it believes the company has a solid future.

It has also left the door open for other State agencies help the group in future.

The company is still waiting for official confirmation that its request has been turned down, but a spokesman said rejection would be a disappointment for the company.

mike65

Rightly too.

Mike.

Sully

Did I hear correctly that the company who owns it have several businesses in debt?

It would be a sad day for the South East and I think Ireland as a whole if Waterford Crystal shut up shop. Its one of the most popular tourist attractions and drives tourists considerably in our direction.

mike65

Depth? Debt?

Mike.

Sully

LOL. Sorry. Debt.

mike65

Waterford and Waterford/Wedgwood have been run disastrously for years, its like they hadn't noticed the ground shifting under thier feet. The cutural shift away from "middle-brow" Sunday Best trinkets, the slide of the dollar (this didn't happen out of the blue), the invitable rise in the cost of fuel (of which furnaces use a lot).

How many living rooms have one of these stuffed with glass these days?

I don't see how the company can be saved in the long run.

Mike.

BBM77

I’m on the governments side on this one. It is not the governments place to prop up failing companies. Let Waterford Wedgewood sells of some of the loss making divisions in the group and put the money into Waterford Crystal. As far as I understand it, the group as a whole is losing money, Waterford Crystal is making money.

In my opinion the university is a much more important matter for the government to consider. Its long term benefits will be much more far reaching than anything that will happen at Waterford Crystal.

Cabaal

Its not the Gov's job to try save any businesses who can't operate, can we not turn every Goverment and Waterford discussion into a Uni debate.

Sully

Ballybrickenman wrote: »

In my opinion the university is a much more important matter for the government to consider. Its long term benefits will be much more far reaching than anything that will happen at Waterford Crystal.

I wouldnt be so sure about that. A lot of businesses down around here rely on Tourism to survive and Waterford Crystal is a major attraction. A university isnt going to replace that. Both would be a huge benefit.

mike65

The Waterford Crystal Experience will still be in place for those tourists that can still afford to visit Ireland.

Mike.

BBM77

Sully wrote: »

I wouldnt be so sure about that. A lot of businesses down around here rely on Tourism to survive and Waterford Crystal is a major attraction. A university isnt going to replace that. Both would be a huge benefit.

The visitors centre is not under treat, but admittedly its creditability would be damaged if the factory was lost. Anyway Waterford has to get over its factory mentally; I know that Waterford Crystal is more than just a factory. But times are a changing and we cannot go forward and hope to be successful by propping up a business that has had its time. We have to change direction and the u word the Cabaal don’t like being mention in this topic is crucial to this change in direction.

Sully

mike65 wrote: »

The Waterford Crystal Experience will still be in place for those tourists that can still afford to visit Ireland.

Mike.

It was my understanding that tourists were doing the tour of the factory with all the development, buying glass and heading home with it? I assume it will remain without the development?

mike65

Yep. I guess there will be some 3-D virtual furnace with a ruddy faced local showing how to blow a stem!

Mike.

KingLoser

Isn't the tour a little bit theatrical as it is anyway? They show a select few of the master craftsmen working on special order pieces, but the actual mass production factory line that's being closed was never open to tourists at all?

I've never been, but a friend of a friend was a tour guide out there... so this post should probably come with [citation needed].

Not The Real Scarecrow

Country is f*u*c*k*e*d. Absolutely no job is safe any more

run_Forrest_run

let it wind down if they cannot manage their business properly. If the company I worked for were in debt then jobs would have to go, simple as that. Call it survival of the fittest but why would anyone throw money at the bottomless pit that is Waterford Crystal? Lots of people did well in that company, time to wise up and join the real world, competition = become more efficient and win customers with a better product/service or join the dole queue.

fitzyshea

Im with the Government on this one. The Government cant be expected to bail out any company thats in trouble. Somehow I dont think the tourist centre will close its about the only part of the glass factory making any money at all.

scout353

Don't think the company was looking for €35m - they were just looking for the Government to guarantee the loan - wasn't AJ O Reilly going to guarantee it with his personal money too ?

Seems a shame that a huge brand should be allowed to slip away - mismanagement or not, I think Waterford is too big to lose from a tourist and economy point of view!

How far does €35m go with this government anyway??

mad man

To be fair I don't think the government could just give them the money especially as it is an established company. The EU blocked a grant of 130 million to Intel a few years back and they would be a much larger and more sustainale employer.I think that the money would have just delayed the inevitable.

I personally think WC has dropped the ball by not marketing their product properly and hence expanding thier market. WC is not as fashionable as it was and that is probably because it doesn't appeal to the young and nouveau rich.Unlike these guys.


http://www.swarovski.com/

I might be wrong but I think the WC market has traditionally been the wealthy Irish and WASP populations in America.It's the 21st century and the demograph has changed.I remember buying sunglasses in California in 2002 and the kid in the Sunglasses hut was getting my details.When I gave him my address (Waterford.Ireland) he says,"Wow you guys make really expensive pens over there!"

I believe Tony O'Reilly sunk 300 million of his own dosh into WW.He would have been better off if he got a modern product range like Swarovski for the company.Opened up their own stores in places like fifth avenue in New York.Knightsbtidge in London and similar places like Paris,Moscow,Tokyo etc.Got some high powered celebrities who like bling e.g Puff Daddy or whatever he calls himself these days:),The Beckhams or whatever arsehole makes it on the cover of hello these days.Maybe hooked up with some high tech companies to make crystal phones.Ipods etc and then embarked on a major advertising "blue man" type campaign. It might not have worked but at least it couldn't be any worse than it is now.

Nolanger

Meatwad wrote: »

Absolutely no job is safe any more

Unless you work in a dole office.

merlante

mad man wrote: »

To be fair I don't think the government could just give them the money especially as it is an established company. The EU blocked a grant of 130 million to Intel a few years back and they would be a much larger and more sustainale employer.I think that the money would have just delayed the inevitable.

I personally think WC has dropped the ball by not marketing their product properly and hence expanding thier market. WC is not as fashionable as it was and that is probably because it doesn't appeal to the young and nouveau rich.Unlike these guys.


http://www.swarovski.com/

I might be wrong but I think the WC market has traditionally been the wealthy Irish and WASP populations in America.It's the 21st century and the demograph has changed.I remember buying sunglasses in California in 2002 and the kid in the Sunglasses hut was getting my details.When I gave him my address (Waterford.Ireland) he says,"Wow you guys make really expensive pens over there!"

I believe Tony O'Reilly sunk 300 million of his own dosh into WW.He would have been better off if he got a modern product range like Swarovski for the company.Opened up their own stores in places like fifth avenue in New York.Knightsbtidge in London and similar places like Paris,Moscow,Tokyo etc.Got some high powered celebrities who like bling e.g Puff Daddy or whatever he calls himself these days:),The Beckhams or whatever arsehole makes it on the cover of hello these days.Maybe hooked up with some high tech companies to make crystal phones.Ipods etc and then embarked on a major advertising "blue man" type campaign. It might not have worked but at least it couldn't be any worse than it is now.

I agree, they've made a lot of mistakes and shown very little vision.

For a start, they don't even have the Irish market anymore. The Irish market should be flooded with a budget Ireland-only range of crystal so that at every 20 and 30 something party, there is crystal everywhere from glasses to decanters. The D4 types would have a field day. Then you create an army of ambassadors for the product.

There is a future in crystal, just not in a thousand jobs in Waterford. That's just a fact. Their overreliance on the US market has hastened the demise of the Waterford plant. They are nowhere in Europe, where the name of swarovski is ubiquitous, despite WC being supposedly the largest glass company in the world.

ShoulderChip

Meatwad wrote: »

Country is f*u*c*k*e*d. Absolutely no job is safe any more

Ha Ha brilliant, I love people like you,
I normally only meet ye in taxi rides home though.