Following a year of investments, optimisation and process changes across the business and at both its manufacturing sites, Hypnos has confirmed the decision not to renew the lease for the Castle Donington site, choosing to focus on ‘one home’ for Hypnos at its fully-owned facility in Princes Risborough.
Hypnos said that the restructure will impact 64 jobs while the also providing savings of around seven-figures.
David Baldry, Group Managing Director said: “We have been working with the Board and Senior Leadership Team to build a secure foundation for future growth. This unfortunate but necessary step marks the last phase of our 2-year strategic focus to strengthen and build a foundation to achieve our ambitious goals for the coming years.
“With the lease of the Castle Donington site ending in September 24 renewal, the opportunity to amalgamate all key business functions over one site needed to be fully considered.
“Over the last year the team, under the leadership of Stephen Faulkner, Group Operations Director, has successfully maintained and developed quality handcrafting whilst increasing manufacturing efficiency at Princes Risborough site by almost 30%. In our dedicated batch production area alone, the bedmaking capacity has almost tripled which means this can accommodate the needs of our hospitality partners without any impact on the bespoke retail products.
“With the 110-mile distance between sites, the move will improve overall efficiency and communication within the business and positively impact our approach to our premium position in the hospitality market. The move will also enable us to capitalise on the operational and service benefits for customers of our significant investment in a new ERP system over one site for our Retail and Contract business units .
“Hypnos Contract Beds Ltd will integrate its operations to the main Princes Risborough site over the coming months. Our customers are unaffected by this move with the field-based sales specification team and installation services remaining in place. We will formally exit the Castle Donington site in September 2024 after dilapidation works are complete.
“Production and administrative teams at the site are sadly affected by this news and work to give our full support for the future. We’d like to thank our committed teams at both sites for their professional approach during the consultation period and for ensuring a smooth transition.”
