by Bedding giant Serta Simmons Bedding filed for Chapter 11 bankruptcy protection late Monday, a move that will likely disrupt the huge portion of the market that it currently holds in the United States and beyond.
Representing some 19% of U.S. bedding sales, the company has a number of well-known brands that in addition to Serta and Simmons, include Beautyrest and Tuft & Needle that collectively accounted for $2.4 billion in sales for the 12 months ended in June 2022. The company is also one of the largest employers in the industry with more than 3,600 employees.
According to a declaration filed by Chief Financial Officer John Linker, the company sells to about 2,200 independent retailers in the U.S. that include mattress specialty stores, furniture stores, department stores, furniture rental stores, mass merchandisers and juvenile specialty stores. In addition, the company sells to the hospitality channel including hotels, casinos and resort properties, through SSB Hospitality.
The debtors in the case include Dawn Intermediate LLC, Serta Simmons Bedding LLC, Serta International Holdco LLC, National Bedding Co. LLC, SSB Manufacturing Co. LLC, The Simmons Manufacturing Co. LLC, Dreamwell Ltd., SSB Hospitality LLC, SSB Logistics LLC, Simmons Bedding Co. LLC, Tuft & Needle LLC, Tomorrow Sleep LLC, SSB Retail LLC and World of Sleep Outlets LLC.
According to additional bankruptcy documents that the Doraville, Georgia-based company filed early Tuesday, the company has about $1.9 billion in total debt, which it aims to reduce to about $300 million.
The documents further state that the Chapter 11 plan seeks for the “equitization and discharge of $1.59 billion in total debt. … Upon approval of the plan, the company will be in a position to implement its long-term business plan unburdened by its overleveraged capital structure.”
Its assets are listed at more than $1 billion and there are more than 25,000 creditors identified through its filing.
The top 20 creditors and estimated debts include the following companies: Leggett & Platt, $17.4 million; Ergomotion, $8 million; FXI, $7 million; CH Robinson Worldwide, $6.4 million; Sinomax USA, $6 million; Elite Comfort Solutions, $5.9 million; Future Foam, $3.5 million; XPO Logistics, $3 million; Carat USA Inc., $2.5 million; Louisville Bedding Co., $2.3 million; Plana Nonwovens, $2.1 million; Nationwide Marketing Group, $1.9 million; Crown Packaging Corp., $1.6 million; Furniture Transportation Systems, $1.6 million; Towne Realty, $1.5 million; Barrettewood USA Inc., $1.5 million; Taubensee Steel & Wire Co., $1.4 million; Bekaertdeslee Inc. Winston-Salem, $1.3 million; Averitt Express, $1.2 million; and Peoplescount MSP LLC, $1.2 million.
Bedding News Now will continue to update this story as developments occur.
