Will emerge from Chapter 11 in ‘near future’
By Alan Wolf, YSN
A U.S. bankruptcy court in Texas has given Serta Simmons Bedding (SSB) the go-ahead to proceed with its reorganization plan.
The restructuring, detailed in the bedding giant’s voluntary, pre-planned Chapter 11 filing in January, is designed to lower its debt load and put the company on a solid financial footing.
According to Serta CEO Shelley Huff, the financial reorganization will slash the mattress maker’s secured debt from about $1.9 billion to $315 million, lowering its annual cash interest expense by more than $100 million and providing ample liquidity and a flexible capital structure to fund its strategic priorities.
The company said it has continued to operate and serve retail customers and consumers “as normal” throughout the court-supervised process and expects to emerge from Chapter 11 “in the near future.”
“With the court’s confirmation of our plan, SSB will emerge with the financial resources and flexibility to continue to drive forward our strategic growth initiatives and further bolster our leadership position in the market,” Huff said. “Throughout the process, we advanced our strategic priorities by introducing new products, investing in marketing, strengthening retail partnerships, operating a high-performing supply chain, and making critical additions to our executive leadership team.
Huff thanked SSB’s employees for their commitment to the company during the restructuring, as well as its retail and supplier partners and other business stakeholders “for their ongoing support of our mission to help people sleep better so they can live healthier lives.”