Dunlop Latex Foam shuts with 155 job losses

- By David Eldridge
Posted 16 September 2008 7:14 am EDT

UK-based Dunlop Latex Foam is to be wound down by administrators who said certain assets would be bought by US competitor, Latex Foam International.

The joint administrators from KPMG were appointed on 2 September after the company failed to finalise funding that would have helped improve its cost base (PRW.com 5 September 2008).

In a statement, the administrators said they had been unable to sell Dunlop Latex Foam as a going concern and it would cease trading in due course.

The announcement will result in redundancies at the manufacturing plant in Pannal, near Harrogate, where 155 people were employed. The administrators will continue with 55 employees while the company is wound down, and the other 100 staff have been made redundant today.

Howard Smith, joint administrator and KPMG restructuring director, said: “It has been disappointing to communicate news of redundancies to employees this morning.

“However, a number of the factors that impacted on management’s turnaround plan also hindered a sale of the business and ultimately this meant the best return that could be secured for creditors was through the sale of certain assets that we have negotiated with Latex Foam International.”

Latex Foam International makes mattress and pillow products at three facilities in the US. The administrators have not revealed details on the assets it is buying due to a confidentiality agreement.

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