Silentnight is the largest UK manufacturer of beds & mattresses and is located in Barnoldswick, Lancashire, England. The company is owned by HIG Europe who acquired the company on 10 May 2011, following a period in administration. The company also has exclusives rights to make & sell Sealy mattresses in the UK & Ireland and operates the Sealy factory in Cumbria. The company also manufactures Rest Assured beds & mattresses and was originally founded in 1946.
History
The brand is Silentnight, and the company name is Silentnight Group. The company was founded on 11 July 1946 by Tom Clarke. It was founded as Clarke's Mattresses Limited in Skipton with the gratuity paid to Tom after he was demobbed from the Royal Navy. The name was changed to Silentnight Limited in 1951 at the suggestion of Tom's wife, Joan. Clarke later said that the name change was a brainwave that brought millions into the company. During the 1980s, and again in the 2000s and the 2010s, the company was the United Kingdom's largest bed manufacturer. For 18 months between 1985 and 1987, the company had a drawn out strike which is the longest strike action against one company in Britain, which took place over 616 days. Workers went out on strike from two of the Silentnight factories at the time, Barnoldswick and Sutton-in-Craven due to an increased demand by management upon production scales. The union also claimed that an agreement had been reached whereby the workforce would not press for a pay rise provided the company did not enforce any redundancies. Eight weeks later, 52 members of staff were made redundant. As a result of the strike, 346 workers were sacked by the company. The strike gained much support from the miners and the Labour Party. Whilst the strike was discussed at length in Parliament and it was noted for its generally passive nature, there were incidents of rock throwing and one notable event when the strikers' caravan was firebombed. The chief executive at the time was Tom Clarke, the company's founder, who was a supporter of the Conservative Party and friend of Margaret Thatcher, who gave him the nickname of Mr Wonderful. This led to the strikers erecting boards at the picket line which read "Mr Wonderful's scabs cross here". Following a loss of confidence stock market the Clarke family bought out smaller shareholders and made the company private in 2003, but the company collapsed under the weight of its pension commitments and went into administration before its rescue by HIG Europe in 2011. Much of the existing management was replaced in 2011, including the Clarke family.
Ownership
The company floated on the stock market in 1973 but due to market uncertainty and a loss of confidence with the management, the Clarke family took full possession of the company again in 2003 and the company became private. The companies fortunes declined in private ownership and, in May 2011, the company was saved from receivership by HIG Europe, a private equity company. HIG Europe spent £19 million acquiring the company, but in doing so, shelved some of the pension scheme rights for retired and current workers. The Pensions regulator served notice in 2013 that they would start legal proceedings to reverse this process and force HIG to re-invest £17.2 million back into the company's pension pot.
Structure
The company employs around 1,250 people in the United Kingdom. It is headquartered in Barnoldswick, Lancashire, in Pendle, where the company has been based since 1949, and in its current premises since 1961. The company has one other active factory that manufactures beds under the Sealy brand located at Aspatria in Cumbria. The company also operates a digital office on Quay Street in Manchester. Formerly, the company had factories in Sutton-in-Craven, Batley and Keighley, which was closed in March 2002. All of these, and the Barnoldswick plant, were in the former West Riding of Yorkshire when the company was started. The boundary change of 1974, put the Barnoldswick factory in Lancashire. The plant is a major employer in the area alongside the Rolls-Royce jet engine facility in the town. The company also had other plants around the United Kingdom as a result of its acquisitions of rival companies. Two plants in South Wales and Andover, which were part of the Ducal brand, were closed when the company re organized and went private in 2003. Many jobs from the closed Keighley factory were transferred to Sunderland, but this plant was sold off as a management buyout under the Stag Furniture brand in June 2005. During the period of ownership by HIG both turnover and profits have increased markedly, after the initial management clear-out & implementations of the turn round plan. Turnover grew by over 50% between 2012 & 2017 & a pre-tax loss of £4.5m was turned into a pre-tax profit of £11.6m in the same time period. Pre-takeover
2008/09 turnover was £110.8m
2009/10 turnover was £107.1m
Post-takeover
2012/13 turnover was £98.9m with pre-tax loss of £4.5m
2013/14 turnover was £109.3m with pre-tax loss of £3.2m
2014/15 turnover was £125.1m with pre-tax profit of £3.3m
2015/16 turnover was £137.5m with pre-tax profits at £3.9m
2016/17 turnover was £152.1m with pre-tax profits of £11.6m