Robert Besser
29 Jan 2023, 07:54 GMT+10
ATLANTA, Georgia: In light of its significant debt, the slowing economy and rising interest rates stifling consumer demand, US mattress-maker Serta Simmons Bedding has filed for bankruptcy protection.
The Atlanta, Georgia-based company, which accounts for some 20 percent of US bedding sales, filed for Chapter 11 protection from creditors this week in the US Bankruptcy Court in the Southern District of Texas.
The company has asked for its debt to be reduced to $300 million from $1.9 billion, under its prepackaged bankruptcy plan.
It has also allocated $125 million in financing to keep operating, including for the salaries of its 3,600 employees, and hopes to win court approval for its restructuring by 8th May.
Serta Simmons's brands include Serta, Simmons, Beautyrest and Tuft and Needle, whose sales total $2.4 billion in the year ending 30th June, 2022.
In a court filing, the company's Chief Financial Officer, John Linker, said a 2020 restructuring added $200 million of new capital, which then enabled Serta Simmons to cope with higher raw material costs and supply chain disruptions caused by the COVID-19 pandemic.
However, debt that matured in 2023 made the company's capital structure unsustainable, leading to a comprehensive restructuring that is currently supported by more than three-quarters of its key lenders, he added.
Some lenders, including Angelo Gordon and Co, Apollo Global Management and Gamut Capital Management, have sued the company to modify or undo the 2020 restructuring.
Get a daily dose of Oklahoma City Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Oklahoma City Sun.
More InformationBEIJING, China: Falling hog prices, mounting losses and rising debt are putting pressure on the biggest pig breeders in China, ...
NEW YORK, New York - A decline in labor costs as measured by ADP failed to boost U.S. Markets Wednesday."ADP's ...
WASHINGTON D.C.: A U.S. auto safety regulator said this week it is opening an investigation into 73,000 Chevrolet Volt plug-in ...
NEW YORK: This week, a New York judge approved legal settlements to end lawsuits that halted the state's legal cannabis ...
NEW YORK, New York - U.S. stocks spent most of Tuesday meandering, with the major indices closing out the day ...
DEARBORN, Michigan: This week, Ford said a six-week United Auto Workers (UAW) strike cut its sales by some 100,000 vehicles ...
NEW YORK, New York - In a rare move, United Nations Secretary-General Antonio Guterres has taken a dramatic constitutional step ...
BUKITTINGGI, Indonesia: On December 2, Mount Marapi in West Sumatra province, Indonesia, erupted, sending hot ash clouds several miles (kilometers) ...
PHILADELPHIA, Pennsylvania: In a measure supporters claimed will increase public safety amid high violent crime rates, Philadelphia City Council passed ...
CHICAGO, Illinois: As winter sets in and with cold weather just around the corner, Chicago is struggling to house hundreds ...
BOLOGNA, Italy: Due to fears of a collapse, local officials have secured the area around one of two 12th century ...
MUNICH, Germany: The heavy snow and icy conditions that hit Bavaria, Germany, canceled flights and long-distance trains out of Munich, ...