Councillors have welcomed the ‘great news for Axminster’ that the town’s famous carpet company has been saved and will now be owned by its workers.

The company collapsed in February 2020 with the loss of 80 jobs. But now a group of UK private investors, industry leaders and the Dutfield family has rescued it.

A consortium of investors, including the family which restarted the historic business in 1937, has salvaged it from administration and intends to reboot production.

The business, which had amassed debts of nearly £8million, is now well-funded and debt free, the new owners said.

The news has been welcomed by councillors in Axminster, with Cllr Andrew Moulding saying: “It is great news for Axminster, great news for the historic Axminster Carpet industry and great news for those dedicated employees, whose jobs have been saved.”

He added: “It is not likely all the workforce will be re-employed and the council will strive, alongside other partners, to continue to support those who will be seeking new opportunities and alternative employment.”

Cllr Ian Hall added: “This will hopefully go a long way with the excellent support that has been given by East Devon and the Axminster Job Club. This will enable the individuals and their families who have been enduring a difficult journey to come to a healthy decision that must be paramount to their own wellbeing.

“Please remember, there will still be support available on Thursday’s at the Pippins Centre. It is of course excellent news that the future looks far brighter for the Carpet Industry in Axminster.”

 East Devon District Council’s portfolio holder for the economy, Cllr Kevin Blakey, added: “We were delighted to learn the news that Axminster Carpets has found a new buyer, which will enable an element of re-employment at the factory.

“We’re keen to support a more productive and sustainable future for carpet manufacturing in Axminster, and we look forward to learning how many staff will remain with the firm and in what capacity. This will help us adapt our ongoing redundancy support to employees who continue to need it.

“Our next support session is opened up to anyone who has been made redundant, be it from Axminster Carpets or more recently from Flybe. It will take place at the Pippins Community Centre in Axminster on 12 March, from 9am to 12pm.

“East Devon District Council and our partners will continue to offer one-to-one guidance and practical assistance for anyone in need of our support.”

Axminster Carpets has a long tradition of making the world’s finest carpets for the most discerning clients and is a holder of a Royal Warrant.

It was founded in 1755 by Thomas Whitty, the creator of the now famous Axminster Weave and Harry Dutfield restarted the business in 1937.

Famous customers include King George III and Queen Charlotte, who also visited the factory, and Queen Elizabeth II.

The new owners say Axminster Carpets is well placed for a successful and sustainable future, and Robert Day, who is leading the private investors, said: “The business has never been in a better position to again become a significant player in the sector.

“There is a plan to implement an employee ownership model so that the local people who have worked so hard over some difficult years can feel part of the resurgence of this proud company.”

Joint administrator Benjamin Wiles, of Duff & Phelps, added: “We are absolutely delighted to be able to announce today that we have secured the future of Axminster Carpets, one of the best-known British brands, following the successful sale of the business and assets of the company.

“The swift conclusion of this process has enabled Duff & Phelps to secure the future of the business. This deal will provide a stable financial platform, ensuring its long-term viability.”