Bed manufacturer Silentnight made one last desperate attempt to stay afloat this week as they asked creditors to agree to a rescue plan.
The firm, which is heavily in debt are now seeking a CVA (Company Voluntary Agreement) after the banks called in loans they had already extended several times.
Chief Executive Neal Mernock revealed, “The group is trading profitably and generating cash,” but blamed the problems on unmanageable debts dating back to onerous pension liabilities they took on in the 1980s and 1990s.
“Silentnight is one of the UK’s best known brands, with a proud history of manufacturing and distributing beds since 1946,” added Mernock.
“The approval of the CVA proposal by our creditors will be a major step forward in securing Silentnight’s future.”
With over 1,250 employees across the country the firm is hoping to keep on trading after the banks withdrew their credit facilities and the pension regulator turned down an attempt to offer an equity stake in the company in lieu of its pension fund debts.
“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.