Georgia, US – Troubled mattress maker Serta Simmons Bedding (SSB) has had its plan of reorganisation confirmed by the US Bankruptcy Court for the Southern District of Texas. The company, whose other brands include Beautyrest and Tuft & Needle, expects to emerge from Chapter 11 bankruptcy in the near future.
Chapter 11 is a structure that allows a company to continue trading while it reorganises its business. SSB expects that once the process is complete, it will have a strengthened financial position, sufficient liquidity and a capital structure that will allow it to fund its strategic priorities. Secured debt will have reduced from about $1.9bn to $315m, lowering annual interest payments by more than $100m.
“With the court’s confirmation of our plan, SSB will emerge with the financial resources and flexibility to continue to drive forward our strategic growth initiatives and further bolster our leadership position in the market,” said CEO Shelley Huff. “We look forward to emergence and continuing to invest in our business and our brands to deliver the high-quality and innovative sleep products, as well as excellent service levels, for which our company is known.”