A Yeovil based world famous leather company has taken a step towards administration. Best known for crafting gloves for the royal family and emergency services, Pittards has been present in the UK market since 1826. The company holds a historical significance in Yeovil’s leather and glove-making heritage. It is also the town’s last remaining glove firm, and employs about 200 people in the UK and 1000 people in Ethiopia. 

With a strong legacy of producing items like trench coats and mittens for the British Army during World War I, Pittards now manufactures diverse products including medical and sports equipment. Headquartered in Yeovil, Somerset, and operating tanneries in Ethiopia, the company recently communicated its inability to secure essential funds to stakeholders.

Challenges like the Pound Sterling’s decline, rising interest rates, and inflation have contributed to the company’s cash flow challenges and financial pressures. The notice of intention for administration was filed last week as a precaution against creditors. They are also actively seeking a buyer to take over the business and its assets. However, Pittards is currently continuing its trading activities as usual.

Reg Hanky, Chief Executive of the group since 2007, has been at the forefront of recent business developments. The firm initially aimed to crowdfund £1.16 million in capital from corporate investors. This fundraising effort was part of a deal to secure additional overdraft funds with its bank over the next two years. But the target was not met, raising just over £300,000, which will now be returned.

Pittards’ historical significance in Yeovil’s glove-making industry is significant, and its operations impact hundreds of jobs in the UK and Ethiopia. Union officials have raised concerns and urged the UK government to provide support. They have highlighted the broader economic challenges that have caused operational and cash flow hurdles for the business.

The overall difficult outlook faced by manufacturers in the country is rather bleak at the moment, and feasible support from the government can help the sector tremendously. Pittards is just one example of the ongoing difficulties encountered by businesses in this industry, particularly after the pandemic. For more information about similar distressed businesses and the investment opportunities they offer, visit Administration List today.