Silentnight, one of the UK’s most successful bed manufacturers, have been forced to seek a Company Voluntary Arrangement (CVA) after the company’s growing debts led to banks refusing to renew their existing loans.
Silentnight’s chief executive claims that the company continues to make profits and generate cash, but that pension liabilities dating back to acquisitions made during the 1980s and 90s have rendered its debt unmanageable at the current time.
A CVA would enable Silentnight to receive an immediate injection of cash and continue trading, and Cooper Matthews, a leading provider of business debt advice and solutions for small to medium businesses, hope that the story will encourage many of the smaller businesses that are struggling in this difficult economic climate to consider a similar course of action.
“We never like to see any company suffering cash flow problems, regardless of their size,” commented a spokesperson for Cooper Matthews. “But we would like to think that seeing such a long-established and renowned company such as Silentnight making use of debt rescue services will show owners of smaller businesses that there is no shame in seeking out help.
“Unfortunately there is a stigma attached reaching out for assistance with financial problems, but the reality is that business debt services from experts such as us at Cooper Matthews can be the difference between a company falling into bankruptcy or recovering and establishing a sustainable business model.”