Crafter’s Companion in Newton Aycliffe is making job cuts

Newton Aycliffe headquartered firm Crafter’s Companion, was founded by TV star Sara Davies, and has confirmed that it has been forced to close its warehouse on St Cuthbert’s Way.

The decision comes after the company moved 60 per cent of its warehouse operations to the US in August this year, following changes to import rules in the country.

The old warehouse belonging to Crafter’s Companion (Image: SARAH CALDECOTT)

In August 2025, the US removed the $800 de minimis exemption, a rule that allowed shipments valued at under $800 to enter the country duty-free.

Crafter’s Companion HQ (Image: SARAH CALDECOTT)

The change means that all commercial shipments into the US, no matter their value, are subject to tariffs, duties, and formal customs entry, making it tougher for UK companies to send items over to the US.

Crafter’s Companion says that seven of its staff left the firm in October, while another seven will leave in January next year.

An old warehouse belonging to Crafter’s Companion (Image: SARAH CALDECOTT)

A spokesperson said: “Due to the US de minimis changes in August, we decided to move 60 per cent of all our warehousing and fulfilment to the US and move to a smaller facility in the UK.

“Despite our best endeavours to maintain a UK warehouse footprint, we’ve decided to move to a third-party logistics solution in the UK, which will enhance customer service and put Crafter’s in a strong position to respond to the peaks in demand and improve efficiency.”

Crafter’s Companion was set up by Sara Davies (Image: SARAH CALDECOTT)

While news of the redundancies was revealed, top bosses at the company say that Crafter’s Companion won’t be the only firm struggling with the US tariff issues and said that it would be recruiting for five new jobs in the future.

Earlier this year, Sara Davies announced a new owner for Crafter’s Companion, Maven Capital Partners, but pledged she would stay at the firm she founded.

The entrepreneur founded the craft supplier company in 2005 while a business student at York University.

Sara Davies, founder of Crafter’s Companion (Image: TOM BANKS/NORTHERN ECHO)

She started the company after identifying a market gap for making envelopes for handmade cards, which led to the creation of the first product, The Enveloper.

When the Dragons’ Den star graduated with her first-class honours degree, she already had a business with a turnover of more than half a million pounds, which would eventually go on to earn her a spot on the BBC show.

The Crafter’s Companion old warehouse (Image: SARAH CALDECOTT)

Following the announcement of job losses, the firm managing director, Dianne Sharp, said that the warehouse closure was a “disappointing decision” but said she is positive about the future.

She added: “We will be closing our remaining warehouse operation and moving to another third-party logistics solution in the UK instead. This is a result of the situation in the US at the moment.

“These are tough decisions we have to make, but, in the long term, it won’t lead to any job loss because we will recruit people in the future.”

When asked about whether the closure decision would mean that County Durham workers would be made redundant, the Crafter’s Companion boss admitted that it was “frustrating and sad” but said that other companies are facing battles with doing business in the US.

“Locally, we still employ 97 people, and we’re looking to recruit more people for our headquarters,” added Dianne.