To hear the news that a company as prestigious and historic as Wedgwood has gone into administration is a terrible shock. It’s one of those names that most of us have been aware of at some level in all our lives. Its name has been virtually synonymous with high quality pottery and porcelain, particularly the world famous Jasperware – see the picture of the Portland Vase.

It seems impossible that a company that has been in existence for around 250 years although it merged with Waterford Crystal in 1987 to form Waterford Wedgwood.

A direct descendent of Josiah Wedgwood, the company’s founder, has criticised recent management decisions. Tom Wedgwood has said that the company has a strong market in Japan and China which it has been unable to meet. However, since production has been moved from Wedgwood’s traditional home of Stoke-on-Trent to Indonesia, demand in these countries has fallen. He argues the Chinese and Japanese want genuine Wedgwood made in the UK. He also says that the company was struggling before the present recession.

Whatever the reasons behind its problems, it is very sad that it should find itself in trouble.

The Café Royal in Central London’s Regent Street, is closing after 143 years and its contents are all being auctioned by Bonhams on January 20. Its closure is caused not by the recession but by the redevelopment of that part of Regent Street.

For most of its life, it’s been at the heart of London’s high society. Celebrities numbered among it clientele are as diverse as Oscar Wilde, Princess Diana, Winston Churchill, Margaret Thatcher, Noel Coward, Elizabeth Taylor and Mick Jagger.

Charlie Thomas, Head of Bonhams Knightsbridge Furniture, says “…Bonhams is delighted to be selling the contents of the Café Royal. Bidders will have the opportunity to acquire a small piece of this iconic London institution”.

Everything must be sold so auction lots are as varied as magnificent Venetian chandeliers, furniture, brandy casks, cigar humidors, paintings, mirrors, photographs and even a full sized boxing ring.

Because everything must go, it’s all being sold without reserve. The good news is that some things have relatively affordable estimates. “A large collection of black and white photographic reproductions depicting celebrities including John Mills, Noel Coward, Gertrude Laurence, Lord Balfour and Princess Marie Louise,all mounted, glazed and framed” have an estimate of £100 to £150(approx $150 to $220). In contrast, “A pair of early 20th century Venetian clear glass twelve-light chandeliers” have an estimate of £3000 to £5000 ($4500 to $7500).

Even some of the furniture has reasonable estimates. “An 18th century Dutch mahogany tripod table” is estimated between £200 to £300 (approx $300 to $450).

It will be interesting to see, in these straitened times, if lots reach their reserve or the magic of the Café Royal name propels prices upwards in spite of the recession.

What will happen to the UK antiques trade in these straitened times? It has been struggling since 9/11 when many Americans stopped travelling abroad. This situation continued with the fall of the dollar against the British Pound which made buying here in Britain too expensive for most Americans.

What must be understood is that American dealers, coming here and filling containers to sell in the USA, has been one of the driving forces of the UK’s antiques trade. When they stopped coming, so trade became more difficult. Over the last 7 years, antiques fairs (shows) have gone out of business or cut back on the number of events each year. In the middle and top of the market, dealers have cut back on the number of fairs they were willing to do. Just covering the stall (booth) rents and other costs involved has become harder. Making a reasonable profit for the risk and time has become something of a miracle.

Meanwhile, stores and antiques centres have closed and many older dealers have retired.

Tastes have changed. Now brown furniture is hard to sell for a decent price. Many other antiques are no longer particularly fashionable either. Over the last 10 years, here in the UK, we have seen minimalism become fashionable in home decorating and it’s a style that doesn’t suit many antiques. Of course, Art Deco and other modern items do fit in with this kind of decor and prices have risen in some areas.

Now the recession has started to bite. Banks are unwilling to allow small businesses, like antique dealers, to have overdrafts. Without this facility, dealers can’t buy fresh stock so their stock doesn’t change. If they do fairs, they are taking much the same things to fair after fair and regular visitors have seen it all before and don’t buy it. Prices for many antiques are low in the auction rooms too so offloading ‘tired’ stock there won’t raise much.

It’s not all doom and gloom for everyone. Some dealers have transferred their businesses to eBay and their own independent websites. They have adapted their stock and prices to the new conditions and so can make a living and, in some cases, a good profit.

The very top dealers, with good client lists and contacts among the richest collectors, can still sell profitably but these don’t generally have the trickle down effect on the rest of the trade that can come from a healthy middle market in antiques.

When the kind of dealers who do the Olympia Fine Art & Antiques Fair, Penman Fairs and other good multi-day fairs sell well, they then go out and look for new stock. They buy from smaller fairs, dealers and antiques centres. In turn, these dealers need to restock and start visiting the one day fairs, car boot sales and part time dealers. This is the trickle down effect.

The other factor against the antiques trade is the fall in the housing market. Whenever this has happened before, the sales of antiques has fallen. If people aren’t moving house, they don’t buy much furniture or other objects.

Is there any hope? I don’t know. The most enterprising dealers will survive the recession with their businesses intact but probably not without changes. It will be interesting to see how those dealers alter their buying and selling habits to run successful businesses.

Royal Worcester Coffee Service with
gilded mounts, coffee spoons and
sugar nips in its own case.

The prestigious Royal Worcester and Spode company has gone into administration. Makers of fine quality ceramics for over 250 years, the company numbered the Queen of England among its customers.

It filed for administration late yesterday (Nov 6), apparently another victim of the worldwide recession. It leaves 388 workers, mostly in Worcester and Stoke-on-Trent (England) wondering what is going to happen to their jobs and, indeed, will they still have jobs.

Price Cooperhouse, the Administrators, are trying to find a buyer for the company and said, “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.”

How sad that such an historic company, makers of high quality pottery and porcelain, should finally succumb to current economic circumstances after withstanding wars, downturns and recessions for more than two and a half centuries.

Read about the history of Spode.