BEDDING firm Dunlopillo has been bought by Hilding Anders, the Swedish parent company of its arch rival Slumberland in a deal reported to be worth £12m.

North Yorkshire-based Dunlopillo is one of the biggest private employers in the Harrogate area, with 320 staff at its Pannal headquarters.

Under the deal, manufacture of Dulop Latex Foam will continue on the Harrogate site which will guarantee 240 posts.

However, discussions are taking place with the new owners about the possibility of transferring the remaining 80 jobs to the Slumberland site in Oldham.

A statement from Hilding Anders said after a short transitional period marketing and assembly of Dunlopillo's ranges will be moved from Harrogate to Slumberland's facilities in Oldham.

Richard Smith, former managing director of Dunlopillo, now becomes chief executive of the newly-formed Dunlop Latex Foam Ltd at the Pannal site.

The Dunlopillo site has enjoyed steady growth over the past five years with a turnover of £26m.