DIRECTORS AT Waterford Crystal were paid 31 per cent more by the company in its last full financial year before it collapsed last week along with the other companies in the Waterford Wedgwood luxury goods group.
Accounts for Waterford Crystal Ltd, lodged with the companies office here, show that its 14 directors earned €2.1 million between them in the year to the end of April 2008. This compared with €1.6 million in the previous financial year, when 11 directors were employed by the group.
These emoluments include pension contributions and “other” payments although no breakdown is provided. The board was chaired by Kevin McGoran.
The accounts also showed that Waterford Crystal’s pension deficit was €68.6 million at the end of April 2008 compared with €55.8 million a year earlier.
The deficit for the Waterford Wedgwood group, which includes the UK and other operations, is more than €111 million.
Waterford Crystal paid €4 million in redundancy to 96 workers who left the group last year. Remaining workers are facing substantial reductions in their pension entitlements and union representatives met the Tánaiste yesterday to discuss the issue. They are seeking the establishment of a fund to protect pension benefits.
Deloitte, the receiver and administrator of the group, yesterday made 367 workers redundant at Waterford Wedgwood, the majority at the company’s site in Barlaston, Staffordshire, Deloitte said. Angus Martin, joint administrator, said the job losses were out of a total of 1,868 UK employees.
“The business will be continuing to trade as normal, and the administrators are continuing discussions with parties who have expressed an interest in purchasing the business,” he said.
US private equity group KPS capital partners has signed a letter of intent to acquire “certain assets” of the group.
Waterford Crystal’s accounts give a snapshot of the 13.6 per cent slump in crystal sales which, along with poor demand for its china and tableware products, tipped the group into insolvency.
Crystal sales last year were €116 million. While sales at Ireland were flat at just more than €30 million, its revenues from the United Stated declined by 19 per cent to €67.8 million.
Sales to “other” countries declined to €18.3 million last year from €20.2 million in fiscal 2007.
Waterford Crystal racked up total losses of €41.1 million that year.
