Bankruptcy Court Judge Grants All First-Day Motions in 1800mattress.com Chapter 11 Proceeding

Furniture World News

The U.S. Bankruptcy Court, Eastern District of New York, granted all six first-day motions proposed by 1800mattress.com, including approval for debtor-in-possession financing provided by Sleepy's, which is seeking to acquire the company through the Chapter 11 process. The voluntary Chapter 11 filing was made earlier this week by Dial-A-Mattress Operating Corp., the company's legal entity. The key motions granted include one for approval of procedures, dates and deadlines for sale of the company's assets, as well as issues surrounding assumption and assignment of contracts and leases. The other key motion granted by the court involved authorization to obtain post-petition financing and use of the collateral of existing lenders. "We are obviously pleased the court saw fit to grant all our first-day motions, including converting the involuntary Chapter 7 bankruptcy petition into the current Chapter 11 proceeding," said 1800mattress.com Chairman and CEO Napoleon Barragan. "Our call center, internet, chat and retail stores remain open and it is business as usual for our company. We have the right assortment and depth of inventory to satisfy our customers' needs and no one should see any disruption of service during this process," Barragan said. Last week, 1800mattress.com and Bethpage, NY-based Sleepy's, the largest mattress retailer in the country, announced their intention to combine their businesses in order to deliver greater quality, service and value to consumers. The deal is subject to approval of the bankruptcy court after completion of competitive bidding procedures routinely implemented in Chapter 11 cases. About 1800mattress.com: Founded in 1976, 1800mattress.com is the leading national multi-channel (internet, chat, call center and showrooms) retailer of mattresses, box springs and bedding products. It features products by all major brands, including custom sizes, sofa beds, Murphy beds, futons, and adjustable and organic beds. Its award winning customer service is well chronicled in thousands of media articles and books. The company was also the first mattress retailer to introduce a two-hour delivery window, and fast national and international delivery of its products. Its business-to-business sales division supplies schools, hospitals, hotels and other institutions. For more information, visit www.1800mattress.com.