Georgia, US – Mattress maker Serta Simmons Bedding has filed for Chapter 11 bankruptcy. The company is to significantly reduce its funded debt from $1.9bn to $300m via a restructuring support agreement with its key financial stakeholders.
It says the arrangement, which includes access to $125m in capital, will enable the business to continue making “critical investments” in its business and brands. It stressed that it continues to operate as normal, with orders still being fulfilled by its manufacturing facilities. New product launches are still planned for later this year.
“After the conclusion of this process, we will have a stronger financial foundation to drive profitable growth and continue delivering the high-quality, innovative products that our company is known for,” said CEO Shelley Huff. “Looking ahead, we will remain focused on launching new innovations, further building a high-performing and resilient supply chain and expanding the commercial side of our business to meet demand for our trusted brands and products.”
Although it had sales of $2.4bn in 2022, it has had financial problems for a while. In 2020, it underwent a restructuring that brought in $200m of additional capital, citing supply chain issues and raw material costs. However, it faced lawsuits after some lenders were prioritised for repayments.
Serta Simmons Beddings owns several of the US’s largest mattress brands, including Serta, Simmons, Beautyrest and Tuft & Needle, which it acquired in 2018. Serta and Simmons were brought together in 2012 by the private equity company Advent. The group employs 3600 people.
