Famous bedding company calls in administrators

DUNLOP Latex Foam, which manufactures bedding products which are sold worldwide, has gone into administration.

The historic company, based in Pannal, near Harrogate, employs 155 people and is the only latex foam manufacturer in the UK.

Dunlop manufactures latex foam pillows, blocks and sheeting for the bedding market, which are sold under the Dunlopillo brand through regional distributors.

The company’s products are sold in more than 70 countries including Australia, China, South Africa, South America and the US.

The company was acquired by its existing shareholders last year when a new management team was put in place. 

A strategic review of the business was subsequently carried out and a turnaround strategy was implemented earlier this year. The business made a small operating profit of approximately £400,000 for the first seven months of 2008 compared to an operating loss of £100,000 for the year in 2007. 

The firm’s directors had secured funding to relocate an element of the business overseas. However the funding was conditional upon the resolution of the company’s pension fund deficit, which has not proved possible. 

Combined with significant cost base increases and the economic slowdown, this slowed down the turnaround strategy. 

Howard Smith and Richard Philpott, of KPMG’s restructuring practice have been appointed as joint administrators of Dunlop Latex Foam.

They said the company’s directors had no alternative but to place the business into administration and the administrators are assessing the prospects of trading the business in the short term whilst seeking a going concern sale.

It is unclear whether any jobs are at risk following the move.
 
Mr Smith said: “Dunlopillo is one of the few truly worldwide brands in the sector that is immediately recognisable to the customer.

“We are continuing to trade the company while discussions take place with both external investors and trade buyers in an attempt to secure a going concern sale.”

Dunlopillo was previously a successful division of the world renowned Dunlop, which was acquired in 1985 by the industrial giant BTR.

Following a successful management buyout in March 1997, Dunlopillo became a privately owned company backed by venture capitalists.

In October 2002 Dunlopillo sold its UK operations to Hilding Anders and became known as Dunlop Latex Foam, trading overseas as Dunlopillo International.