Axminster Carpets, which is urgently trying to find a way out of its financial difficulties, has sold off its tannery business.
Devonia Products went into administration yesterday, but administrators at Duff & Phelps immediately completed a sale of the business and assets to Eastern Counties Leather.

Last week, a notice of intention to appoint Duff & Phelps as administrators to Axminster itself was filed, but the Devon-based manufacturer of quality carpets is currently avoiding administration while it examines rescue and restructuring options.

Nominated joint administrator Benjamin Wiles, said: "Axminster Carpets continues to trade and fulfill its customers' orders while all available options are being pursued by the company's board of directors".

Devonia has been tanning sheepskins on its Buckfastleigh site for over 200 years, and is now the sole remaining commercial tannery in the UK. It processes British sheepskins that have been bred, farmed and reared in the UK and provides a wide range of tanning services to businesses and individuals.

Mr Wiles said the sale of the business as a going concern had resulted in the continued operation of the tannery and saved 20 jobs.

Joshua Dutfield, a director of both Devonia and Axminster, added: "I am delighted that the business's future and the employees' jobs have been secured and I wish them all the best for the future. Devonia is a great British brand with a great heritage in the local area."