Serta Simmons Bedding (SSB) will emerge from bankruptcy “in the near future,” according to a company press release. The retailer, which filed for Chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of Texas in January 2023, expects to return in a strengthened financial position, having substantially reduced its secured debt from approximately $1.9 billion to $315 million, a move that will also lower the company’s annual cash interest expense by more than $100 million.
However, SSB will be competing in a vertical that recently saw a major consolidation, the May 2023 purchase of Mattress Firm by Tempur Sealy International. The $4 billion deal created a company with a global footprint of approximately 3,000 stores, 30 ecommerce platforms, 71 manufacturing facilities and four R&D facilities, serving customers in more than 100 countries.
“With the court’s confirmation of our [restructuring plan], SSB will emerge with the financial resources and flexibility to continue to drive forward our strategic growth initiatives and further bolster our leadership position in the market,” said Shelley Huff, CEO of SSB in a statement. “Throughout the process, we advanced our strategic priorities by introducing new products, investing in marketing, strengthening retail partnerships, operating a high-performing supply chain, and making critical additions to our executive leadership team.”
During the bankruptcy period, SSB filled two key C-suite jobs with outsiders in April 2023.