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Teddy bears have been making history at Merrythought

It's a name that has been synonymous with teddy bears for almost 90 years.

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Sarah Holmes inside the shop

Charming characters made at Merrythought in the riverside town of Ironbridge can be found in homes around the globe.

Each bear is lovingly created by expert hands at the fourth generation family firm using traditional techniques that have been honed through the decades.

The company has survived a world war and several economic slumps, including one in 2006 which saw it cease production for a short time.

But it has continued to fight back and hold its own against a growing import market and a flood of cheaper goods.

Merrythought is now the last firm of its kind still hand-making soft toys in Britain today.

Every year thousands of bears are purchased as gifts and by collectors while the factory also supplies high-end retailers such as Harrods and Fortnum & Mason and produced the official commemorative bear for the London 2012 Olympic Games.

Merrythought teddies have also been thrust into the spotlight during cameo appearances in popular television dramas such as Downton Abbey and Peaky Blinders.

Others have been bought by a number of celebrity customers, including One Direction's Zayn Malik, who selected an 8ft-tall bear as a Valentine's gift for a mystery lady.

During the decades they have even been owned by royals including the Queen, who was presented with a Merrythought corgi in the 1950s.

But as well as having had an illustrious past, the firm also has a bright future, according to co-director Sarah Holmes, who says they are seeing steady growth in demand for their soft toys.

"Merrythought has been in my family for four generations and I'm proud that while lots of manufacturers that started at the same time have long gone, we've survived a world war, huge economic changes and the onslaught of cheap consumer goods from China.

"I'm very proud that Merrythought is still here and still thriving. It's due in part to our skilled and loyal workforce and that a Merrythought teddy bear is known for being timeless, beautiful, high-quality and made to last.

"That is why we are still after almost 90 years and why we will hopefully be here for many more to come," says the 36-year-old, who is the great-granddaughter of the firm's founder William Gordon Holmes.

Going forward Sarah is keen to build on the company's success and capitalise on the current demand for British-made products both here and overseas.

"People are prepared to pay more for a product, which is hand-made and also British made. They recognise it as a quality product which will last a long time.

"I'm keen to the develop the export business at the moment. There is growing interest in classic, British-made products especially in America and countries in the Far East.

"There is a buoyant collectors' market in Japan so we produce limited edition teddy bears for the Japanese.

"We also work with a number luxury brands so that is another area I would like the develop. There is much potential with corporate gifts where businesses are looking to give their customers a keepsake," explains Sarah.

Along with her sister Hannah, she took over the reins of the firm in 2011 after their father Oliver Holmes died following a short battle with pancreatic cancer, aged just 60.

Her role involves managing the factory and overseeing many different areas of the business, which employs 25 staff.

Around 100 bears and animals are made at the factory, which is based inside a former 19th century iron foundry, every day.

Every stage of the 15-step process, from the first piece of fabric to the completed toy, is carried out under the same roof.

"We use a variety of bespoke mohair and other fabrics, including alpaca, and they come in lots of different styles and colours.

"Mohair is a traditional, natural fibre. Most stuffed toys nowadays are made using acrylic fabrics.

"The fact that we use mohair is our USP. It's what gives our teddy bears their timeless, classic look and they will also last a long time.

Each teddy bear has their own pattern and the first step on the production line sees the mohair cut into body parts using what look like large cookie cutters.

These are then carefully sewn together into head, leg and torso shapes but it will be a while before the body parts are assembled and begin to resemble a teddy bear.

Next the head is filled with wood wool which is firmer so that it will maintain its form and the body is filled with softer polyester wool and sewn up. Some bears are fitted with a ‘growler’, which makes a noise as they are tilted, or a music box.

Metal discs and rods are fitted to ensure that the arms and legs are fully jointed. But they don't start coming to life until their eyes are added and their noses and smiles are stitched on by a steady hand.

"Each style of teddy bear has a different style of nose and their smile is what gives them their individuality -they all have their own personality and charm- now they look like teddy bears," explains Sarah.

But before the bears are ready to leave the factory and go to their new homes, they are treated to some pampering.

The mohair is brushed before being trimmed around the eyes and nose to make them stand out and loose bits of thread are also removed.

Finishing touch accessories such as the classic satin bow or clothing will then be added.

"Lots of TLC goes into this final stage to make sure they are looking their best and are ready to be treasured for years to come," says Sarah, who previously worked in marketing.

Merrythought's traditional collection alone offers a choose of nine different bears, which come in a variety of sizes, as well as five animals.

Prices start from £65 for their traditional Shrewsbury teddy bear. They also have limited edition characters and their Cheeky and Punkie bears.

Some of the finished cuddly toys are sold in the on-site shop and by other retailers while others will be bespoke orders for customers or special collector's items heading for the Japanese market.

The firm recently expanded its range of animals to include, for the first time in 30 years, a vintage-style dog and cat - known as Digby the Dog and Coco the Cat.

Another growing area for the business is personalised orders. "We do a lot more personalised teddy bears especially as baby gifts. It's the ideal way to give a really unique gift because you can give a newborn baby a teddy bear with their own name and date of birth on. It's something really special that they can cherish forever,"says Sarah.

But she says her favourite will always be the golden mohair Shrewsbury bear. "It's a timeless, classic mohair teddy bear with a sweet smile. I also like Freddy Fox because he's so cunning and has lots of character," says Sarah.

It's not, however, just in people's homes where Merrythought creations can be found. Eagle-eyed viewers of Downton Abbey may have spotted little Sybbie Branson, daughter of Tom Branson and Lady Sybil, with her beloved stuffed toy rabbit.

"This was our Binky Bunny - a grey, mohair rabbit, which has a very vintage look. Sybbie was always running in and out of scenes carrying her rabbit," Sarah tells us.

But she was surprised when one of their creations unexpectedly showed up in gritty crime drama Peaky Blinders.

"Production companies contact us if they want a bear but we didn't know one had been bought for Peaky Blinders until I was watching one evening and saw one of the main characters with a bear and realised it was one of our London Curly Gold bears, which was very exciting!

"It's wonderful to see where our bears turn up and how far they travel. A company in the US ordered 20 guardsman and Beefeater teddy bears so before we sent them on their way we lined them up in front of the factory for a photograph," explains Sarah.

In fact one of Merrythought's giant teddies made quite an arrival in Japan when fashion house Daks drove one around Tokyo in a Range Rover Evoque drawing heads where ever they went.

These huge bears weigh more than 9st and even in a sitting position are more than 5ft tall. Around 20 are produced every year for a range of clients and they each take two days to make because of their size.

As well as pop star Zayn Malik, other customers include sofa seller Loaf which bought some for the entrances to its showrooms.

While new bears are proving a huge hit, older ones are also remembered fondly by their loving owners. So much so that many have meant so much to their owners that the company has been gifted them back in wills and they are now proudly on display in the shop.

"It's really nice that they have been treasured so much and that people want them to return to Merrythought," says Sarah.