Sleep Innovations Speeds Emergence from Ch. 11
By Jennifer Marks -- Home Textiles Today, 2/9/2009 12:00:00 AM
West Long Branch, N.J. —
Memory foam manufacturer Sleep Innovations in late January 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, which filed Chapter 11 last October, now expects to emerge by late February and without using all of the debtor-in-possession financing that had been made available for operations.
“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 ceo Michael Fux, who sold the business to a private equity firm in 2005, has advised the company that 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.
Sleep Innovations is No. 5 on the HTT Top 15 Supplier Giants list, with estimated 2008 sales of $310 million.
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