German tool and accessories manufacturer to close its UK office, making all staff redundant, as sales are affected by adverse exchange rate.
It has been announced that Wolfcraft will withdraw from the UK market with effect from December 31. As a result, the company will close its office in Purley, Surrey, making all eight members of staff redundant.
In a letter to the company's UK customers, Wolfcraft's executive director Reinhard Wolff said that the decision "had not been taken lightly". However, the weak exchange rate has affected the company, which prices its products in Euros, and led to a drop in profitability in the distribution of products in the UK.
The letter explained: "The changes in the global climate during the last year have meant that it has become increasingly difficult to maintain revenue generation and profitability. This is particularly marked within the UK market and is in part due to the continuingly adverse currency rate."
Wolfcraft reassured that it will continue to provide all UK customers, both retailers and end users, with after sales support from Germany. The company also explained that it will "honour all terms of trading within the UK and continue to deliver products until December 31, 2009, within standard delivery schedules."
However, deliveries will then cease "unless there is a specific existing agreement to the contrary."
A UK customer services line has been set up at 01787 880776 and will run until December 31. After this date, it will be possible to contact customers services in Germany on 0049 2655 51324 and email at email@example.com.
Wolfcraft country manager, UK, Steve Fuller who heads up the Purley office, explained that the company will continue to supply UK customers. However, items will be available on the export price list and customers will be invoiced and have to pay in Euros.
A number of the company's biggest customers have been given a slightly longer notice period, due to existing agreements but, regarding many independent businesses, Wolfcraft is keen to cease the current pricing structure as soon as possible, hence the cut off point at the end of the year.
Mr Fuller added: "We really wanted to exit the market in a professional manner, as we've had a 25 year relationship working with customers in the UK. It is a sad, sad day really but unfortunately that's the way it is in the current climate." Mr Fuller has several things in the pipeline but hopes to stay in the industry.
The company concluded: "Wolfcraft GmbH would like to take this opportunity to thank all of its UK customers for their support and business through many years of trading and wish you every success for the future."