New York, June 2 (Reuters)-
According to court documents, companies that produce spring air mattresses and bedding have filed for bankruptcy protection after selling their key assets and brands to a former executive.
According to court documents, the company, known as the integrated bedding company, has sold most of its assets, including its brand and intellectual property, to the E & E bedding company.
According to the national registration record, E & E bedding is managed by Edward Bates, a former Spring Air executive.
Last week, the remaining corporate assets and 19 affiliates of domlidated stopped their operations and applied to Delaware creditors for chapter VII bankruptcy protection.
Spring Air said in court documents that the company has been operating at a loss for at least a year and has shut down several facilities and layoffs in an attempt to restructure itself.
In court documents, the company said that the private equity firm Riverside Co\'s earlier offer to buy the company for about $8 million had failed.
In Chapter VII bankruptcy, a trustee is usually appointed to supervise the liquidation of the company\'s assets.
Founded more than 80 years ago, the company also sells natural Rest-branded mattresses to compete with mattress manufacturers such as Sealy Corp ZZ.
Simmons Bedding [Serta]SIMMB. UL]
Danpu International (TPX. N).
Mattress manufacturers and sellers have been under pressure this year as consumers slash spending
Buy tickets during the recession.
Mattress retailer 1-800-
Foamex International Inc. , a discount store company and manufacturer for mattresses and mattresses, has sought bankruptcy protection over the past year.
The case took place in the United States, re. S.
Delaware District 1 bankruptcy court09-11875. (
Editor Steve olovsky)