15 of 15
BACKNEXT
Mattress maker says goodnight
Simmons Co., the second largest mattress maker, has been losing a lot of sleep during the downturn. On Sept. 25, the company announced plans to file for Chapter 11 bankruptcy and create a restructuring plan to slash the company's $1 billion debt to $450 million.

The normally stable mattress industry has seen the worst downturn in its history, according to SunTrust Robinson Humphrey analyst Keith Hughes. But, he says, "maybe the worst has passed" since sales seem to be stabilizing.

Private equity firm Ares Management and Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, will acquire the Atlanta-based company for $760 million.

Simmons, owned by Boston private equity firm Thomas H. Lee Partners since 2003 and five other private equity firms prior, reported it had $67.3 million of cash on hand at the end of the second quarter of 2009, but less than $100,000 available to borrow under a senior credit facility.

The company celebrated for modernizing the industry with its no-flip mattress was founded in 1870 by Zalmon Simmons in Kenosha, Wisc., as producer of cheese boxes and wooden insulators producer.

The company got into wire-woven mattresses six years later, grew to run manufacturing plants nationally in 1919 and created the coil spring Beautyrest mattress in 1925.

More galleries

Last updated September 25 2009: 2:55 PM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
50 years of the Ford Mustang Take a drive down memory lane with our favorite photos of the car through the years. More
Cool cars from the New York Auto Show These are some of the most interesting new models and concept vehicles from the Big Apple's car show. More
8 CEOs who took a pay cut in 2013 Median CEO pay inched up 9% in 2013 to $13.9 million. But not everyone got a bump last year. Here are eight CEOs who missed out. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.