Natural and organic bedding producer Natura World said it had filed a Notice of Intention (NOI) to make a proposal under the Bankruptcy and Insolvency Act with the Office of the Superintendent of Bankruptcy in Canada to restructure its business. The company also reached agreement with its lender, Callidus Capital of Toronto to provide $7.8 million (Canadian) in new financing. The new business plan will create a unique opportunity for Natura to solidify its position as the leading natural and organic sleep products brand throughout the world.
The company said there will be no disruption of service to its customers, vendors or suppliers. In fact, the company’s improved cash position will enable it to improve relationships with these stakeholder groups.
Natura World USA, based in Texas, and NexGel, are not affected by the filing.
The company said it expects the reorganization process to conclude expeditiously.
Under the new business plan, Natura World President Ralph Rossdeutscher will maintain his majority ownership stake in the company.
“The decision to file this reorganization plan was made to strengthen our business and to solidify Natura as the leading natural and organic sleep products brand in the world. This strong infusion of capital will strengthen our current business and position the company for dynamic future growth,” said Rossdeutscher.
He explained that the NOI process was a necessary step for Natura to shed debt it had amassed three years ago when it made significant investments in new products, equipment and technologies, just prior the recession hitting in the United States, the company’s largest market.
“While we have reduced operating expenses significantly over the past two years and our current business run rate is actually profitable, we could not fully right the ship and pay down the debt we amassed several years ago, without going through this reorganization process,” he added.
About Natura World: Natura World is a family-owned business with a unique approach to sleep. They develop innovative products for all areas of sleep, not just a mattress or a pillow. Natura World’s goal is to eliminate common sleep disturbances and help people sleep well in order to live better. To learn more about Natura’s luxurious products or to find a retailer near you, visit www.naturaworld.com.
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