by DALLAS — Corsicana Mattress Company and various affiliated entities filed for voluntary Chapter 11 bankruptcy protection Saturday as part of a plan to restructure and ultimately sell the business.
In its filing with the U.S. Bankruptcy Court for the Northern District of Texas, the company listed estimated assets of $50 million to $100 million and estimated liabilities of $100 million to $500 million.
A declaration also filed with the bankruptcy court on Saturday more specifically identified the company’s estimated liabilities at $260 million as of May 30. Its assets were estimated at $151 million, including accounts receivable, inventory, equipment and other fixed assets such as information technology assets and leasehold improvements.
The bankruptcy petition noted that there are between 200 and 999 creditors and listed 20 top creditors with unsecured claims between $201,955 and $4.9 million. According to the declaration, the estimated amount owed to general unsecured creditors is about $45 million.
Corsicana Mattress and the following debtors have moved for joint administration of the Chapter 11 bankruptcy: LLC Thetford Leasing LLC Olive Branch Building, LLC Eastern Sleep Products Company Englander-Symbol Mattress of Mississippi, LLC Hylton House Furniture, Inc. Luuf, LLC Symbol Mattress of Florida, Inc. Symbol Mattress of Pennsylvania, Inc. Symbol Mattress of Wisconsin, Inc. Symbol Mattress Transportation, Inc. and Master Craft Sleep Products, Inc.
According to a release regarding the filing, Corsicana plans to file a proposed asset purchase agreement with an affiliate of Blue Torch Finance LLC, to acquire the company’s assets through a court-supervised auction and sale process. This proposed transaction would be subject to court approval.
In addition, the company said it has received a commitment for debtor-in-possession financing from Blue Torch. This financing, the company said, combined with cash from the company’s ongoing operations is expected to allow it to continue its operations for the foreseeable future. It also said it has asked for approval to “remit employee pay and continue certain court-approved benefit programs uninterrupted.”
“The Chapter 11 process enables Corsicana to accelerate its re-focus on core customers, renegotiate agreements, flatten our organization and drive greater efficiency in all aspects of our operations,” said Corsicana CEO Eric Rhea in a prepared statement. “Our core commitment is to serve our valued customers seamlessly, maintain partnerships with key suppliers and operate with integrity. As a result, we will deliver high-quality sleep products coast-to-coast to everyday Americans, handcrafted in the USA for the best possible price—ensuring the Corsicana business will be strong for another 50 years.”
Rhea was not available for further comment.
The filing follows news that the company plans to close its Symbol Mattress plant in Richmond, Virginia. this summer as part of its strategy of “re-examining the effectiveness and efficiency of its national manufacturing and distribution footprint.”
The planned closure also comes a month after Corsicana announced the closure of its LaPorte, Indiana facility just a month after it opened and less than two months after its acquisition of Symbol.
