Scale LLP Announces that Serta Simmons Bedding's Bankruptcy Filing did not Involve Serta or Serta's Five Minority Licensees
Neither Serta nor its Five Minority Shareholders are Part of Any Bankruptcy Proceedings and the Minority Shareholder's Businesses are Solvent and Fully Operational
SAN FRANCISCO, Jan. 31, 2023 /PRNewswire-PRWeb/ -- On January 23, 2023, Serta Simmons Bedding, LLC ("SSB"), initiated a voluntary pre-arranged court-supervised process under Chapter 11 of the U.S. Bankruptcy Code, along with most of its U.S. corporate entities. SSB's filing has caused some confusion in the market as to whether their filing impacts the entire Serta brand. Neither Serta nor Serta's Minority Shareholders are part of SSB's or any other bankruptcy proceeding.
One of SSB's subsidiaries, National Bedding Company, L.L.C. ("NBC"), which was part of the filing, owns approximately 83% of Serta, Inc. ("Serta"). Serta's other shareholders include five independent licensees (the "Minority Licensees"), who own the remaining approximately 17% of Serta. The five Minority Licensees include: Dormae Products, Inc. (owned and operated in Texas); Serta Restokraft Mattress Company Inc. (owned and operated in Michigan); Palu Bedding Co., Inc. (owned and operated in Oklahoma); Salt Lake Mattress & Mfg. Co. (owned and operated in Utah), and; AW Industries, Inc. (owned and operated in Maryland).
The Minority Licensee are independent of SSB and NBC, are financially stable, have strong payment histories, and have long histories of superb operations. Larry Kraft, President and CEO of Serta Restokraft Mattress Company Inc., one of the Minority Licensees, said, "while SSB works towards a financial restructuring plan, we want the market to understand that the Minority Licensees continue to operate in the ordinary course irrespective of SSB's filings."
In an effort to correct any rumors in the market, this release is intended to make clear that neither the Minority Licensees nor Serta are part of SSB's filings. Aside from the Minority Licensee's connection to SSB through the Serta brand and certain administrative obligations, each Minority Licensee is financially independent of SSB. Serta is also financially independent of SSB. SSB's restructuring website, https://www.ssbrestructuring.com/ , includes information about SSB's filings.
Serta's long history began when it was founded in 1931 in Illinois as Sleeper, Inc. by 13 independent mattress manufacturers who licensed the Serta name. At its peak, Serta had 34 licensees. During the early 2000's, a private equity firm engaged in an acquisition strategy that resulted in NBC acquiring all but six of the licensees. Currently NBC, and indirectly SSB owns all but five of the licensees, the Minority Licensees.
Any media inquiries with regard to the Minority Licensees can be referred to Steve Forbes at [email protected].
Media Contact
Steve Forbes, Scale LLP, 1 3122139461, [email protected]
SOURCE Scale LLP
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