Jessup, Maryland - Dormia Inc., a leading US mattress retailer and manufacturer with 20 stores across the central and eastern US, will start a $4 million bankruptcy liquidation sale on Thursday 3 July. The company filed for Chapter 11 bankruptcy protection earlier this year and the court selected Hudson Capital Partners llc to manage the store liquidations.
Following the liquidation, Dormia said, it will continue to manufacture bedding products for sale by other retailers, but will no longer have any retail outlets. Dormia makes its products in a modern 110 000-sq.ft (10220-sq.m) facility in Jessup, dedicated exclusively to latex and memory foam mattresses.
In a 1 July announcement, Dormia said the ten-week liquidation of inventory valued at about $4.3 million will offer mattresses, pillows, bed covers and other bedding accessories at below-market prices. The liquidation sale will involve all 20 Dormia locations in nine states.
"Dormia is a top-tier, well-respected bedding brand and this sale provides a great opportunity for consumers to acquire these quality products at a substantial discount," commented Jim Schaye, president and ceo of Hudson Capital Partners.
News of Dormia's liquidation sale follows the end of June announcement that The Room Source, a moderately-priced furniture chain, has filed for Chapter 11 and will conduct a court-ordered bankruptcy liquidation sale managed by The High Point Group and Hudson Capital Partners.
Dormia Inc. was formed when mattress retailer Advanced Comfort, Inc. purchased the assets of Classic Corp. a leading manufacturer of bedding products in 1985.
Other US furniture manufacturers are also feeling the squeeze, with mattress maker Spring Air closing plants in St Louis, Missouri, and Phoenix, Arizona, while Furniture Brands International is closing its High Point, North Carolina, upholstery plant.