Great Western Coffee Shop

(http://news.bbcimg.co.uk/media/images/65979000/jpg/_65979694_65979689.jpg)
The firm employs about 400 staff

Axminster Carpets, one of Devon's biggest employers, has applied to go into administration.

The firm, which can trace its beginnings back to 1755, employs about 400 staff at its east Devon plant. It said administration would provide "a moratorium period during which the various rescue options being explored can continue".

The firm would go on trading while solutions to its problems were sought, it said in a statement. The company said it had filed notice of intention to appoint Benjamin Wiles, Geoff Bouchier and David Whitehouse of Duff & Phelps as joint administrators.

Company director Joshua Dutfield said: "We continue to be committed to working to achieve the best possible outcome for all concerned and most importantly the staff and suppliers."

Tim Jones, from the Devon and Cornwall Business Council, said: "They just got to the point where the market wasn't with them and they didn't have that bit of luck to turn it round. It's desperately sad news for employees at a difficult time in the market generally. This doesn't just affect Axminster, they also have employees in the Buckfast area too."

Mayor of Axminster Andrew Moulding said it was "extremely sad and troubling news". Councillor Moulding, who is also deputy leader of East Devon District Council, added the council wanted "to see a thriving economy in east Devon and we will do anything we can do assist the company in these difficult times."

The origins of Axminster carpets can be traced back to Thomas Whitty, who began making carpets and rugs in the town in 1755 using what became known as the Axminster method of weaving. The first carpets were bought by the likes of King George III and Queen Charlotte, who visited the factory.

The Whitty family business perished during the 1830s - but the tradition was revived in the town in 1937, when Harry Dutfield, the son of a Glasgow carpet designer, founded the current company.

Axminster Carpets will begin trading again on Monday after a deal was made to save the company and secure about 100 jobs.

A consortium, led by private investor Stephen Boyd, acquired the business "as a going concern" from the administrators Duff and Phelps.

The firm were into administration on February with the loss of 300 jobs.

A statement said the deal would safeguard the future of a "well respected heritage brand."

'Overwhelming support'
 
Axminster Mayor Andrew Moulding told BBC News he was "absolutely delighted".

"It's very encouraging and hopefully as business grows, the new company might be able to re-employ some of the unlucky people who've lost their jobs," he said.

Axminster Carpets was previously one of Devon's biggest private employers.

After it went into administration, carpet-making operations in Axminster were scaled down and yarn production at Buckfast stopped.

The new company, known as Axminster Carpets (2013) Limited, will focus on its retail network and the domestic consumer side of the busines.

Carpets will continue to be designed, developed and produced in east Devon.

Managing director Josh Dutfield said he had been overwhelmed with support of people who wanted the firm saved.

In a statement, Mr Dutfield said: "As a local man, born and bred, I have fought for the survival of this business over the last few months and indeed the last few weeks have been the most challenging of my life.

"I have been determined to do everything possible to secure the continuation of the business for the Axminster community and I feel a sense of pride in securing our future."

Mr Dutfield said there was a "strong and talented team" with the skills needed to take the "fantastic brand and company" into the future.

"We march forward with pride and with a passion to succeed," he said.

Royal patronage
 
The consortium deal was also backed by Centric Commercial Finance.

The origins of the luxury carpet maker can be traced back to Thomas Whitty, who began making carpets and rugs in the town in 1755 using what became known as the Axminster method of weaving.

The first carpets were bought by the likes of King George III and Queen Charlotte, who visited the factory.

The Whitty family firm went out of business in the 1830s, but the tradition was revived in the town in 1937, when Harry Dutfield, the son of a Glasgow carpet designer, founded the current company.