Australia’s oldest mattress manufacturer has been saved from the brink of collapse after a Chinese bed maker offered a financial lifeline in exchange for a stake in the company.
A.H. Beard, a 127-year-old family business, entered voluntary administration in April after battling increased competition from imported suppliers and growing strain on local manufacturers.
After months of uncertainty, a Chinese bed maker has emerged with a lifesaving offer for A.H. Beard.
Softide Investment, a subsidiary of Shanghai-listed Keeson Technology Corporation, will get a stake in A.H. Beard as it provides funds to help repay creditors.
This financial injection will also give fresh capital to support the business and allow it to emerge from voluntary administration.
It will secure the future of its manufacturing and of about 200 jobs across its various Australian locations.
The company will maintain Matthew Beard as its chief executive officer under the new ownership structure.
“This milestone is about far more than financial backing. It’s a significant vote of confidence in our business and the future of Australian manufacturing,” Mr Beard said.
The mattress maker owed staff and other creditors more than $13 million when it was forced to call in administrators.
A report from A.H. Beard chairman Garry Beard revealed suppliers and creditors were owed about $10.2 million, while staff were owed almost $2.9 million.
The company was $3.75 million in debt to Hong Kong exporting company Lexington Trading International and another $2.73 million to Joyce Foam.
A.H. Beard was also owed about $7 million by hotels, resorts, mining companies and major retailers as it suffered three years of losses in the lead up to its administration.
The company was owed money by multiple Forty Winks stores, Harvey Norman, Domayne and others.
When the company fell into administration in April, Australian Made CEO Ben Lazzaro said the collapse was “incredibly sad and concerning for Australia’s manufacturing sector”.
“As a fifth generation Australian Made business with more than 125 years of history, A.H. Beard represents the very best of local craftmanship, innovation and sustainability,” Mr Lazzaro said.
“This situation highlights the growing strain on local manufacturers from rising costs and increased competition from imported goods.
“It’s a timely reminder of why supporting Australian Made matters – to protect local jobs, strengthen our industrial capability, and ensure iconic businesses like A.H. Beard can continue to thrive into the future.”
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