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Classified in: Business
Subject: BCY

CORSICANA WILL RESTRUCTURE BUSINESS THROUGH CHAPTER 11 PROCESS


FILING INCLUDES PROPOSED ACQUISITION BY BLUE TORCH FINANCE

DALLAS, June 25, 2022 /PRNewswire/ -- Corsicana Mattress Company and certain of its affiliated entities filed for voluntary reorganization today under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Texas in Fort Worth. The filing indicated that Corsicana will be filing a proposed asset purchase agreement with an affiliate of Blue Torch Finance, LLC to acquire the Company's assets through a court-supervised auction and sale process under section 363 of the Bankruptcy Code. The proposed transaction is subject to Court approval.

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 the Company's ongoing operations, is expected to enable the mattress company to continue operating as usual and continue to maintain its high standards of quality and customer service. The Company has sought approval to remit employee pay and continue certain Court-approved benefit programs uninterrupted.

"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 CEO Eric Rhea. "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 USA for the best possible price?ensuring the Corsicana business will be strong for another 50 years."

For more information about Corsicana's Chapter 11 case, please visit www.donlinrecano.com/corsicana.

Founded in 1971 in Corsicana, Texas, Corsicana Mattress operates ten factories across the country and has become one of the mattress industry's largest manufacturers. The Company offers a full range of promotional and step-up products that feature the latest in sleep technology, including innerspring, memory foam and hybrid models. The Company also has mattress-in-a-box programs that simplify delivery. In 2021, Corsicana acquired Richmond, Virginia-based Symbol Mattress, creating the nation's largest manufacturing organization serving consumers looking to purchase mattresses for under $3,000. Corsicana leverages its national manufacturing presence to provide industry-leading quality, value, delivery, and customer service. To learn more, visit https://www.corsicanamattress.com.

Contact: Kimberley Wray, kwray@scompr.com

SOURCE Corsicana Mattress Company


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News published on 25 june 2022 at 11:08 and distributed by: