Dunlopillo, the Yorkshire-based pillows and bedding manufacturer, has gone into administration leaving 155 jobs at risk.
KPMG, the administrator for Dunlopillo, is intending to sell the business as a going concern.
Dunlopillo had been experiencing financial difficulties due to soaring raw material costs and energy bills, while the economic slowdown had hit consumer demand for its products, according to the administrators.
The directors had secured funding to relocate part of the business overseas. The funding, however, was conditional upon the resolution of the company’s pension fund deficit, which was not possible.
Hilding Anders, Europe's largest bed manufacturer, purchased the Dunlopillo brand in the UK and Ireland in 2007.
Dunlopillo was established in 1926. Dunlopillo Latex foam was invented three years later. Dunlop makes Dunlopillo-branded latex sheeting, blocks and mattresses for the worldwide bedding market.
The company sells its products in about 70 countries including Europe, Australia, China, South Africa, South America and the United States.