Historic Stoke-on-Trent ceramics manufacturer Burgess & Leigh and its parent company Denby Pottery have entered administration, with FRP Advisory taking control of both businesses.
The Middleport-based pottery firm, established more than 160 years ago, and its Derbyshire-based owner cited rising operational costs and weakened consumer spending as key factors behind their financial difficulties.
Denby acquired Burgess & Leigh in 2010.
The company described the appointment of administrators as "a necessary step" after failing to secure investment partners despite what it said was "enduring global appeal and positive recent momentum."
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Both firms will continue trading under FRP Advisory's management while discussions take place with potential buyers interested in acquiring parts or all of the business and its brands.
The Denby group initially filed a notice of intention to appoint administrators on March 11, a move designed to provide stability while exploring restructuring options and seeking investment partners.
According to the GMB Union, it remains unclear how many of the group's 500 employees could face redundancy.
During the administration period, Denby confirmed it will continue fulfilling online orders and supplying customers through its retail outlets as normal.
Denby and Burgess & Leigh enter administration with 500 jobs at risk
|GETTY
The company's international operations in South Korea, the United States and China are not subject to administration proceedings and will continue trading without disruption.
Administrators are now pursuing discussions with interested parties regarding a potential sale of the business, its assets and its historic British brands.
Stoke-on-Trent City Council leader Jane Ashworth said local authorities have been working closely with Burgess & Leigh as administration became a possibility.
Ms Ashworth said: "The local MP and I have had urgent meetings with ministers about the situation."
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Administrators are pursuing a potential sale of the business
|GETTY
She added: "We believe that Burleigh remains viable and has a full order book."
Ms Ashworth said the council would do everything possible to safeguard the company, local industries and employment.
She said: "The fact of the matter is that global and national factors - such as high energy prices and cheap overseas imports and forgeries - are making it very difficult for manufacturers."
Ms Ashworth added the council would lobby Government to ensure the ceramics industry is recognised as vital to Britain's future.
Craig Thomson said: "There is a very real sense of fury amongst the Denby workers receiving this news."
Mr Thomson said unions had repeatedly raised concerns about the impact of energy costs on the ceramics sector.
He said: "We've been screaming and shouting about the impact the cost of industrial energy is having on the ceramics industry for years."
Mr Thomson added: "Now the time for warm words is over, and Ministers must decide if they want a British ceramics industry or not."
He said Denby's heritage stretches back more than 200 years and that its future is "too important to be left to chance."