Sleep Innovations speeds Ch.11 emergence
Fux not returning to company
-- Home Textiles Today, 1/30/2009 2:13:00 PM
West Long Branch, N.J. – Memory foam manufacturer Sleep Innovations this afternoon announced it plans to emerge from Chapter 11 bankruptcy protection earlier than expected.
The company reported that its reorganization plan has been overwhelmingly approved by each class of creditors entitled to vote on it. Sleep Innovations now expects to come out of Chapter 11 by late February and without using all of the debtor-in-possession financing that had been made available for operations. The company entered bankruptcy in October.
“We are proud of the dramatic progress that has been made,” said Rick Heller, ceo. “It is quite unusual to be ahead of schedule on these sorts of things.”
The company credited the support of longstanding customers, suppliers and lenders for the relatively swift process.
In a related matter, Sleep Innovations announced that former president and ceo Michael Fux, who sold the company to a private equity firm in 2005, has advised the company he will not be returning to a management role as previously announced. Fux reportedly wants to spend more time on personal matters and philanthropic endeavors.
“Sleep Innovations is a terrific company, and I wish it much success in the future,” said Fux.
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