Serta Simmons Bedding (SSB) has concluded its financial restructuring and emerged from Chapter 11 with plans to “refresh the vast majority of its product portfolio” over the next 18 months, according to a company statement. The retailer also will increase its marketing investments and sharpen its brand positioning to better differentiate itself from others in the mattress space.
SSB also is aiming to more frequently update its product mix in the future, with the goal of delivering consumer-driven innovations as well as high-value products across multiple brands and price points. The company also will focus on better supporting its retail partners and their sales associates to drive growth, while leveraging its DTC platforms to test new shopping concepts and improve the omnichannel consumer experience.
The investments also will enhance SSB’s supply chain to enable efficient delivery for both retailers and customers. Planned supply chain enhancements include the implementation of new processes and technology as well as optimizing and upgrading the mattress retailer’s manufacturing network.
“The financial restructuring process we completed today signifies an important step forward that will enable us to accelerate our turnaround and strengthen our leadership position in the market,” said Shelley Huff, CEO of SSB in a statement. “The Serta and Beautyrest brands in our portfolio have a deep heritage in innovation and have played meaningful roles in the lives of consumers for generations. With our financial restructuring behind us, we are taking steps to drive growth by getting back to our innovation roots, reinvesting in our iconic brands, and nailing the fundamentals of our business with a focus on commercial and supply chain excellence.”
SSB will emerge from Chapter 11 with approximately $315 million in debt, down from $1.9 billion when it started the process in January. The company also has obtained a $100 million revolving credit facility which, along with cash on hand, will provide additional financial flexibility as SSB pursues its strategic initiatives.