Beds and furniture group Silentnight today announced it is closing its factory in Keighley with the loss of up to 220 jobs.

The firm blamed tough market conditions in the face of recent expansion for the decision to shut the 20-year-old cabinet manufacturing site, one of the company's oldest operations.

Production is now set to move to Sunderland where Silentnight has invested £6.5m over the past two years.

Chief executive Bill Simpson said: "We have more capacity at Sunderland than we have orders. The growth that we expected has just not happened."

Silentnight employs 5,000 people in the UK with half of its revenue coming from its traditional beds business.

Mr Simpson said some of the staff facing unemployment at Keighley could be employed at one of the bed division's major sites 20 miles away.

The group employs 800 people at the plant in Barnoldswick and is recruiting more staff to work at that site.

"We are already bussing people in from Keighley to Barnoldswick.

''There are other opportunities for some of these people," Mr Simpson said.

Staff were told of the decision at a meeting called by managers this morning and another meeting was expected to be held this afternoon when more details are expected to be revealed.

Silentnight Holdings PLC combines famous brands such as Parker Knoll, Sealy and Layzee Beds.

Silentnight is famous for its Hippo and Duck characters who were created to demonstrate the unique 'No Roll Together' properties of a Silentnight bed.

The firm shed 50 workers in 1990 as a result of its decision to pull out of direct delivery service to customers.