The factory’s closure, which G&B called a response to “ongoing structural change in the global wallcoverings market” may lead to the loss of approximately 100 jobs, around a quarter of the company’s total workforce.
G&B will begin talks with affected employees imminently.
Andrew Graham, G&B CEO, said: “The global wallcoverings market has been undergoing structural change for many years due to the growth of online retail and the category’s contraction in physical retail, trends which have accelerated post-covid.
“Consumers and retailers have also become even more environmentally conscious and are actively seeking more sustainable home interiors products.
“Due to reducing demand for traditionally-manufactured product and rising production inefficiencies as a direct result, our manufacturing operation at India Mill in Blackburn is no longer fit for purpose.
“Sadly this means we need to explore the difficult decision to close the operation.”
The manufacturer will now shop out its long-run production to partner factories in Europe in order to focus on digital production at its new Padiham facility.
Graham added: “Our team have investigated a number of specialist manufacturers – several of whom we have worked with for many years already - and we are confident they have the right capacity and capability to meet our needs.
“This would give us the flexibility and cost-efficiencies we need to continue serving this important part of the market even more strongly over the years ahead through our ongoing commitment to exceptional design development, customer service and category management.
“What remains paramount is that we continue to support colleagues during what will be a personally unsettling period.”
G&B’s move to digital-only production follows its recent expansion in the print-on-demand market, with a refreshed e-commerce platform and two brand-new Durst Alpha Wallpaper edition installations since 2022.
In 2022, digital print amounted to 35% of G&B’s total production.
The company is also aggressively reducing its carbon emissions. As of 2022, it had already cut its emissions by 46% from 2019 levels, and had achieved carbon-balanced status.
Its goal to reach Net Zero by 2030 will be aided significantly by the move to digital-only production, as the firm uses only renewable energy at its Padiham factory.
Graham said: “As a business that’s been innovating the market for over 75 years, we need to look ahead and respond to these changes to make sure Graham & Brown remains at the very forefront of our industry, with a more efficient, flexible, sustainable and digital-led operation capable of delivering our customers’ changing needs and meeting our ESG goals.
“We plan to continue growing and adapting the capacity of our new digital production facility over the coming years, which will ensure we can manufacture the most innovative, design-led wallpapers for our customers and fulfil our ambition to be the world’s leading wallcovering design house.”
