The U.S. Bankruptcy Court for the Southern District of Texas has confirmed Serta Simmons Bedding, LLC’s pre-arranged plan of reorganization. SSB, which has continued to operate as normal and serve retail partners throughout the court-supervised process, expects to emerge from Chapter 11 soon.
“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, of the company based in Doraville, Georgia.
“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 continued. “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.”
The company expects to emerge with a strengthened financial position, including ample liquidity and a flexible capital structure, to fund its strategic priorities. As a result of the financial restructuring, SSB will have substantially reduced its secured debt from approximately $1.9 billion to $315 million, which will also lower the company’s annual cash interest expense by more than $100 million.
Weil, Gotshal & Manges LLP is serving as SSB’s legal counsel, Evercore Group L.L.C. is serving as SSB’s investment banker, and FTI Consulting Inc. is serving as SSB’s financial and restructuring advisor.
“We are grateful to our associates for their commitment to our business throughout this process,” Huff said. “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.”
