Bed maker Silentnight seeks CVA

The company, which employs 250 people at its Batley production centre, has been trading since 1946.

It said in a statement it was seeking a CVA in a bid to reduce its liabilities and to address a widening pensions deficit.

Chief executive Neal Mernock said: “Unfortunately, the withdrawal of our facilities by our formerly supportive lender earlier this year has left us with an unserviceable level of historic debt.

“That, combined with an onerous and growing pension deficit accrued as a result of a series of acquisitions made during the eighties and nineties – all of which have since been closed or sold as we have refocused on our core bed manufacturing and distribution operations – has forced us to seek an immediate injection of cash.

“In the absence of a willing commercial banking partner, and after a formal proposal to the Pension Regulator offering an equity stake in the Group was declined, a CVA has been deemed the only viable route forward at this time.

“The approval of the CVA proposal by our creditors will be a major step forward in securing Silentnight’s future. With the ongoing support of our loyal suppliers and staff, and on a more stable financial footing, we are confident that Silentnight will continue to generate substantial profits, to outperform the wider market, and to innovate and grow market share as home to both the UK’s and the world’s biggest bed brands.”

Silentnight employs 1,000 other staff at its sites in Lancashire and Cumbria.