Silentnight proposes a CVA

20 April 2011

Silentnight, the Lancashire bed manufacturer with 1,250 staff has proposed a Company Voluntary Arrangement after its bank withdrew funding facilities and the pension regulator turned down help, given its pension deficit.

The company has its headquarters in Barnoldswick and owns the well known bed brand Sealy.

To January 2010 the company had a turnover of £107m and profit of £243,000.

Neal Mernock, the chief executive, said; "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 CVA document has been filed by KPMG with the High Court in Manchester. A creditors' meeting has been called for 6 May 2011, where 75% (by value) of the creditors will be required to back the CVA.