A bed maker is still in negotiations with one of its rivals amid speculation that part of the firm could be taken over.

Dunlopillo, which employs 320 workers at its Pannal site in Harrogate, North Yorkshire, is involved in the talks with Slumberland, which has a major factory at Oldham in Lancashire.

A spokeswoman for the Harrogate firm said there had never been any suggestion that Dunlopillo would be moving from its Pannal site. "Moving is not on the agenda," said the official.

The spokeswoman added there was no confirmation of completion of negotiations on a specific date, but talks were continuing and "we will indicate if and when there is something definite to announce."

Dunlpillo is one of the largest private employers in Harrogate with a current turnover of £25m.

It is believed Slumberland's Swedish parent company Hilding Anders AB is involved in negotiations to buy Dunlopillo's consumer plant.

When news of the talks broke last month it had been suggested a deal could be completed by the end of August.

High profile customers of Dunlopillo's luxury mattresses and beds include Harrods, John Lewis Partnership, Allders, Selfridges and House of Fraser.