Simmons files for Chapter 11
Mattress maker files for bankruptcy as part of restructuring deal; decision expected within 60 days.
NEW YORK (CNNMoney.com) -- Simmons Bedding Co., the second-largest mattress maker in the U.S., filed for bankruptcy on Monday.
Atlanta-based Simmons filed for Chapter 11 under a restructuring plan in Delaware Bankruptcy Court. If the bankruptcy filing is approved, then the process should take about 60 days, according to Michael Henson, spokesman for Simmons through an outside firm.
"All that's left is confirmation of the court," he said. "If the court approves the restructuring plan, the company should be able to close the transaction shortly hereafter."
The plan includes a $760 million deal in which private equity firm Ares Management and Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, would contribute equity. Teachers' also owns National Bedding Co., the largest bedding maker and part of the Serta brand.
Boston-based private equity firm Thomas H. Lee has owned Simmons since 2003 and has been struggling under restructuring charges. The deal would allow Simmons to slash its debt to $450 million from $1 billion.
Ryan Trainer, spokesman for the International Sleep Products Association, the industry's trade group, said that mattress sales are down 13% through September of this year, in the most recent data available. 
