by DORAVILLE, Ga. — Serta Simmons Bedding, LLC. announced that the U.S. Bankruptcy Court for the Southern District of Texas has confirmed the company’s pre-arranged reorganization plan and that it expects to emerge from Chapter 11 bankruptcy protection in the near future.
The company said it expects to emerge with a strengthened financial position, including ample liquidity and a flexible capital structure that will allow it to fund its strategic priorities.
As part of the reorganization plan, it anticipates reducing its secured debt from $1.9 billion to $315 million. This is expected to lower the company’s annual cash interest expense by more than $100 million.
“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,” said Shelley Huff, CEO, SSB. “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. We look forward to emergence and continuing to invest in our business and our brands to deliver the high-quality and innovative sleep products, as well as excellent service levels, for which our company is known.”
Huff added, “We are grateful to our associates for their commitment to our business throughout this process. We also thank our retail and supplier partners, as well as our other business stakeholders, for their ongoing support of our mission to help people sleep better so they can live healthier lives.”
