Bed company, Sleep Depot Ltd has said that it is going into administration and will be closing down following the company's failure to secure a financial rescue.

Sleep Depot employs 367 people and is based in Blackburn, the company will now pass into the hands of Kroll's Corporate Advisory & Restructuring Group, who are acting as administrators.

Sleep Depot said that it had made strenuous efforts to arrange a financial restructuring of the Company.

Unfortunately these efforts were not successful and as a result they [the management] were left with no option but to place the company into Administration.

James Gleave, one of the appointed administrators, said, The trading environment for all retailers is particularly tough at present and following a thorough evaluation of the Company, we have regrettably concluded that it is impossible for The Sleep Depot Limited to continue to trade.

This decision will mean the immediate closure of 72 Land of Leather concessions, 31 Paul Simon concessions and nine independent stores. These closures will result in 367 redundancies, including head office and warehouse staff.

We are in the process of speaking to employees and concessions to make them aware of the situation. We appreciate that this is a difficult time for everyone involved and I would like to take this opportunity to thank all employees, store concessions and customers for their support during the administration process.