Dunlopillo business appoints KPMG administrators

Dunlopillo manufacturers Dunlop Latex foam have appointed administrators from KPMG.

The Harrogate-based business, which employs 155 people, is still trading and administrators are looking to sell it as a going concern.

Existing shareholders bought the business in 2007 and placed in a new management team, which implemented a turnaround strategy for the business. But funding required to relocate part of the business overseas was dependent on the business resolving its pension deficit, which it was unable to achieve.

Combined with significant cost base increases and the economic slowdown, this served to undermine the turnaround strategy.

Howard Smith and Richard Philpott of KPMG's restructuring practice will act as joint administrators.

'Dunlopillo is one of the few truly worldwide brands in the sector that is immediately recognisable to the customer,' said Smith. '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.'

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