Parker Knoll was taken over in October 2000

The company employs more than 400 people in the town.

The move comes in the wake of a takeover in October 2000 by Lancashire-based company Silentnight, who bought the firm for a reported �23m.

Silentnight's Managing Director, Vincent Cruise, has said the move is regrettable but unavoidable.

"We're now about to enter into a period of consultation with the employees and their representatives about how to mitigate those redundancies and how to implement them.

"We are not likely to be implementing any compulsory redundancies before the 7 June this year."