Mattress Discounters Seeks Bankruptcy Protection
Mattress Discounters sought bankruptcy protection from creditors for the second time in six years, citing declining sales. The closely held Upper Marlboro company, known for its "Have a good night's sleep on us" jingle, listed both debt and assets of $10 million to $50 million in Chapter 11 documents filed in U.S. Bankruptcy Court in Greenbelt.
Mattress Discounters, a 30-year-old business, emerged from its previous bankruptcy in 2003. The retailer operates about 140 stores in six states and employs about 475 people.
Sales fell "as a result of the industry downturn, combined with increasing competition and a weakened overall economy," chief executive Stephen Newton said in court documents.
The retailer said it is exiting the New England market and will close all 45 stores located there. Fifteen have already shut or will soon, and the company is seeking court approval to conduct store-closing sales.
Mattress Discounters plans to borrow as much as $2 million from HBK Investments to help fund operations while it restructures, according to court documents. The company owes about $16.5 million under a secured pre-bankruptcy loan arranged by HBK Investments.
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Posted by: Virginia | September 11, 2008 2:48 PM
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