367 job losses as bed company closes

4:37pm Tuesday 1st April 2008

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By Emma Cruces »

HUNDREDS of jobs have been axed after a Blackburn bed company went out of business.

Bed retailer Sleep Depot, based in the Shadsworth Industrial Estate, went into administration on Monday.

But it took the administrators just 24 hours to announce yesterday that it would be "impossible" for the firm to continue trading.

Some 74 head office and warehouse staff based in Blackburn have lost their jobs.

A total of 367 workers are being made redundant across the country.

The firm has also closed its concessions in 72 Land of Leather stores, 31 Paul Simon shops and nine other independent stores.

Sleep Depot sold beds, mattresses and bedroom furniture both online and through the concessions.

James Gleave and Anne O'Keefe, partners at London-based Kroll's Corporate Advisory and Restructuring Group, were appointed the company's joint administrators on Monday.

Mr Gleave said management had made strenuous efforts to save the company in recent months.

But he said: "Unfortunately management's efforts were unsuccessful and as a result they were left with no option but to place the company into administration.

"The trading environment for all retailers is particularly tough at present and following a thorough evaluation of the company, we have regrettably concluded that it is impossible for Sleep Depot Limited to continue to trade.

"We are in the process of speaking to employees and concessions to make them aware of the situation.

"We appreciate that this is a difficult time for everyone involved and I would like to take this opportunity to thank all employees, store concessions and customers for their support during the administration process."

Sleep Depot had recently been selling off its wares at a 50 per cent discount online.

However administrators said due to the company's closure, no current orders could be fulfilled.

The company has operated a trust account since March 2, into which all customer deposits have been paid.

As a result all customers who ordered goods after this date should be entitled to a full refund. The administrators will shortly be writing to all customers to explain the situation over their deposits. Any concerned customers can contact the Kroll helpline on 0161 838 4539 .