Furniture company Silentnight said it is to close a factory in the north of England, as it reported a 13% fall in profits.

Production at the factory, in Keighley, West Yorkshire, will be switched to the company's larger Sunderland facility, with the loss of 180 jobs.

Chief executive Bill Simpson said discussions were continuing with the workforce about the transfer of around 40 to 50 staff to Sunderland.

Profits for the last year were hit by problems in the company's furniture section, which saw a loss of �3.2m.

Continued investment

The closure at Keighley will help "bring about a step change to our cost base", Mr Simpson said.

Silentnight's bed division performed better, reporting a �15.5m profit.

Mr Simpson said Silentnight would continue to invest in its furniture division as it integrates Ducal and Parker Knoll, which it bought in October 2000.