Concern for Silentnight as it enters Company Voluntary Agreement
The future of bed manufacturer Silentnight looks uncertain after the company entered a formal Company Voluntary Arrangement following the bank’s decision to withdraw funding.
The company, which employs over 1,250 staff, which is still trading, has been looking to overturn a large pension deficit, but has seen a potential rescue package turned down by the Pensions Regulator.
The acquisition strategy in the 1990’s has been blamed for the deficit with Neil Mernock, chief executive of the company claiming that Silentnight was trading profitably and was generating cash.
"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,” added Mernock.
A creditors’ meeting will be held in Manchester on 6 May to choose whether to agree to the CVA.
Silent Night recently worked with Feather Brooksbank on its sponsorship of American Idol on ITV2 having worked with the agency for over a decade.