TWENTY-eight workers have been made redundant after one of Teignbridge's top tourist attractions went into receivership this week.

After 12 years of successful trading, Cardew Design, Bovey Tracey, was forced to take action after a failed joint venture with a US firm resulted in financial losses for the company, which employs 54 staff.

A craft show, billed as the biggest in the south west and co-organised by the company and set to take place in Bovey Tracey in June, now hangs in the balance.

The show, Crafts For Bovey, in Mill Marsh Park, funded by Leader Plus, is a collaboration between Cardew Teapottery, the House Of Marbles and the Devon Guild Of Craftsmen.

Peter Kirvan, Cardew managing director, said: 'This is obviously very disappointing news, particularly for our loyal staff, some of whom will be losing their jobs. It is also particularly frustrating given that the business at Bovey Tracey is performing so well.'

Twenty-six people will keep their jobs at the pottery, which attracts more than 100,000 visitors a year. the company also has a 10-acre woodland, hosting a range of children's activities.

Bovey Tracey mayor, Cllr David Risdon, said: 'With the idea of Bovey Tracey becoming an arts and crafts honeypot, Cardew is one of the major players.

'I hope it can be resolved and the pottery continues to carry on. We do not want to see it taken off the tourist map.

'The people who are to lose their jobs are obviously going through a very difficult time. The more customers that continue to go there, the more chance that business will continue as usual.' Of the craft show, he said: 'we are still optimistic'.

Teignbridge Council arts development officer, Doff Pollard, said she had not had the chance to discuss the implications with the craft fair organisers. 'We are hoping to explore the possibilities of it still going ahead,' she added.

Town and district councillor Fernley Holmes said: 'I understand through the grapevine that some of the staff went to BCT, Heathfield, yesterday looking for jobs.

'I went to a business conference at Cardew a month ago when the boss was very upbeat and said the firm was making £2 million a year,' he said.

Andrew Stoneman and Jason Godefroy, partners from Menzies Corporates Restructuring, have been appointed joint administrative receivers to Cardew Design plc.

Mr Stoneman said: 'We are currently looking for buyers for the business and we would like to confirm that the site is open for business as usual. We would encourage people intending to visit the site over Easter to do so.'

Cardew Design was established in 1992 by Peter Kirvan and Paul Cardew. It set out to become the leading designer and producer of unusual teapots in the world, a position it reached within five years.

The company is a Disney licence holder, meaning that children can paint well-known Disney characters.

In 2003, the teapottery was nominated as a runner-up in the South West Visitors Attraction Of The Year.