Britain’s biggest bed maker, Barnoldswick-based Silentnight, has been rescued from collapse, safeguarding more than 1,000 jobs.

HIG Europe, the European arm of global private equity investment firm HIG Capital, has agreed to buy Silentnight’s ongoing business interests, including its brands, after the firm was put into administration.

The group, which faced a £100m black hole in its pension fund, went into administration after it failed to win enough support for a Company Voluntary Agreement.

The acquisition protects the jobs of the group’s 1,250 staff, of which 650 work at Barnoldswick and 250 in Batley and at plants in Cumbria and Ireland.

Silentnight had proposed a Company Voluntary Agreement (CVA) to address an “unserviceable level of historic debt” and its pension deficit, following the withdrawal of credit facilities by its bank earlier this year.

Creditors had been due to vote on the CVA this week, but despite getting support from suppliers, employees and HM Revenue & Customs, the group failed to win the backing of the Pension Protection Fund, which was its largest creditor, leading to its decision to go into administration.

Neal Mernock, chief executive of Silentnight, said: “Whilst we are disappointed that the CVA was not successful, this deal with HIG Europe safeguards the jobs of our 1,250 employees and enables Silentnight to continue its proud history of manufacturing and distributing beds across the UK and Ireland.

“Silentnight is now in a much stronger financial position, with healthy short-term cash flow and the longer-term ability to invest in marketing and product development.”

Mark Kelly, partner of HIG European Capital Partners, said: “Silentnight is a strong, profitable business with a 21 per cent market share and a position as the largest manufacturer in its sector in the UK and Ireland.

“We are delighted to have acquired a business of this standing and heritage, and look forward to working with the current management team to further strengthen and develop its position over the coming years.”

Silentnight, known for its hippo in striped pyjamas and duck logo, was founded in 1946 and supplies around half a million beds a year to retailers.

The company was listed on the stock exchange until 2003, when a deal was concluded to bring the business back into family hands. Some 75 per cent of the company was owned by family trust Famco Holdings, with the remaining 25 per cent held by John Clarke - son of founder Tom Clarke.