Corsicana's plant in Richmond, Va.

DALLAS – Mattress manufacturer Corsicana Mattress Co. and 11 connected companies have filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code, and the filing offers an inside look at the company’s struggles.

According to the filing, the company is working on a proposed asset purchase agreement with an affiliate of Blue Torch Finance as a stalking horse bidder. The company has proposed in court documents that Blue Torch acquire Corsicana’s assets through a court-supervised auction.

The plan is subject to court approval.

In addition to the proposed sale, Blue Torch has committed to provide debtor-in-possession financing to the company.

In connection with the proposed sale transaction, Corsicana has received a commitment for debtor-in-possession financing from Blue Torch. Upon Court approval, the new financing, together with cash generated from ongoing operations, is expected to enable the mattress company to continue operating as usual. In the filing, Corsicana is seeking approval to pay its 865 full-time and part-time employees and 58 contract employees, as well as benefit programs, during the restructuring.

“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 Eric Rhea, chief executive officer of Corsicana. “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 U.S.A. for the best possible price—ensuring the Corsicana business will be strong for another 50 years.”

Here are three key financial facts from the court filing:

To guide the company’s restructuring, the company has named Michael Juniper chief restructuring officer. Juniper is a partner with CR3 Partners, a Dallas-based turnaround consultancy.

In addition to Corsicana, the 11 affiliated companies including in the filing are: Thetford Leasing; Olive Branch Building; Eastern Sleep Products Co.; Englander-Symbol Mattress of Mississippi; Hylton House Furniture; Luuf; Symbol Mattress of Florida; Symbol Mattress of Pennsylvania; Symbol Mattress of Wisconsin; Symbol Mattress Transportation; and Master Craft Sleep Products.

Prior to the filing Corsicana had been cutting costs and looking to reduce its factory count. Most recently, the company announced plans to close a former Symbol Mattress factory in Richmond, Va. Earlier this year, Corsicana said it would shutter is newly opened boxed bed manufacturing facility in Indiana after opening two months prior.

I’m Sheila Long O’Mara, executive editor at Furniture Today. Throughout my 25-year career in the home furnishings industry, I have been an editor with a number of industry publications and spent a brief stint with a public relations agency where I worked with some of the industry’s leading bedding brands. I rejoined Furniture Today in December 2020 with a focus on bedding and sleep products. It’s a homecoming for me, as I was a writer and editor with Furniture Today from 1994 until 2002. I’m happy to be back and look forward to telling the important stories impacting bedding retailers and manufacturers.

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