Atlanta, Georgia -- Simmons Bedding Co. announced 16 Nov that it had filed a pre-packaged plan of reorganisation under chapter 11 in the Bankruptcy Court in Delaware.
In connection with this filing, Simmons parents, Simmons Co. and Bedding Holdco Inc., and all its domestic subsidiaries, have also filed for chapter 11 bankruptcy protection, with the exception of Simmons' Canadian and Puerto Rican operations.
Under the plan, leading mattress and bedding supplier Simmons said it will continue normal operations, with lenders, trade vendors, suppliers and employees paid in full. Simmons also said it expects to emerge from chapter 11 within 60 days.
As announced 25 Sept, under the plan Simmons Bedding and all of its US and foreign subsidiaries, as well as its Bedding Holdco, will be bought by certain affiliates of Ares Management llc and Teachers' Private Capital, the private investment department of the Ontario Teachers' Pension Plan (collectively AOT).
Simmons said the plan will allow it to reduce its debt from about $1000 million to about $450 million, so it can emerge with a stronger balance sheet and increased financial flexibility.
"Today's filings are a necessary step toward the successful conclusion of our financial restructuring. We do not anticipate any changes in our daily operations as a result of this filing. Our manufacturing plants will operate as usual," and customers should continue to expect the same service," said Stephen Fendrich, Simmons Bedding's president and chief operating officer, in Simmons' 16 Nov announcement.