Bed manufacturer Silentnight's controlling ownership is set to change hands, signaling an end to a tenure that was marked by controversy.
Controversial Silentnight Sale: HIG Europe Prepares to Sell Major British Bed Manufacturer
After a tumultuous 14-year ownership, HIG Europe, a private equity group, is set to sell Silentnight, a prominent British bed manufacturer. The sale, which may conclude next year, marks the end of a contentious chapter in the company's history[1][3].
The sale of Silentnight was initially facilitated by HIG Europe in 2011, when the company acquired the company through a pre-pack administration process led by KPMG. This process excluded the pension scheme from the sale, sparking strong criticism and regulatory scrutiny[1].
The Pensions Regulator pursued HIG Europe for compensation due to pension avoidance, issuing two warning notices in 2014 and 2016. However, HIG Europe's request for a judicial review was rejected[1][2].
KPMG faced significant consequences for its role in the pre-pack sale. In 2021, the Financial Reporting Council (FRC) fined KPMG nearly £13 million, a near-record penalty, for misconduct related to the deal. Additionally, David Costley-Wood, the KPMG partner leading the sale, was fined and banned from the accountants' professional body for 13 years[1].
HIG Europe's acquisition of Silentnight was with the intention of generating a return without the bed-maker's pension liabilities[1]. The Pension Protection Fund took over the responsibility for paying pensioners of Silentnight following the contentious sale[1].
As the sale of Silentnight nears, the business Interpath Advisory, previously owned by HIG Europe, is also in the process of being sold. City sources estimate that Interpath Advisory could be valued at about £800m in a potential sale[1].
The sale of Silentnight will not only end HIG Europe's association with the company but also bring a resolution to the regulatory conflicts that arose from the controversial sale[1][3]. This case is widely viewed as one of the most contentious private equity transactions in the UK, highlighting concerns over pension protections and the role of administrators in pre-pack sales[1][2].
References:
- The Guardian
- The Pensions Regulator
- City A.M.
Read also:
- Quipt Home Medical posts enhanced financial results for the third quarter of 2025
- Financial predicament in Ludwigsburg: Notable athlete joins a fresh sports team at the national level
- Two people perished and multiple others were hurt in an explosion at a US Steel facility located in Pennsylvania.
- Swapped My Toyota Highlander for a Ford Explorer Following Two Unsuccessful Transmissions, Now Find Solace in Escaping the Chaotic Journey
