Reply from our Silentnight Expert:
There has been press speculation recently that Silentnight is experiencing financial difficulties. Some of these stories have blown the situation out of proportion, but there is truth in many of the reports.
Silentnight is a profitable company that has outperformed the wider bed market over recent years and succeeded in increasing market share against a difficult economic backdrop. However, the onerous deficit in our final salary pension scheme has grown to an unsustainable level. That, coupled with the fact that our formerly supportive bank chose to withdraw our facilities earlier in 2011, has forced us to seek an immediate injection of cash.
A Company Voluntary Agreement (CVA) has been deemed by Silentnight and our advisers as the best route forward to achieve this at present. Our creditors will vote on whether to accept the CVA we have proposed on Thursday 12 May 2011 and, assuming that more than 75 per cent are in favour, the company will be able to move forward on a stable financial footing.
That will enable us to continue to generate 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. In the meantime, we continue to trade as normal, manufacturing and distributing our high quality products across the UK.