FILE INCLUDES PROPOSED ACQUISITION BY BLUE TORCH FINANCE
DALLAS, June 25, 2022 /PRNewswire/ — Corsicana Mattress Company and certain of its affiliated entities today filed for voluntary reorganization under Chapter 11 of the United States Bankruptcy Code in the Northern District of Texas in fort worth. The record indicated that Corsica will file a proposed asset purchase agreement with a subsidiary of Blue Torch Finance, LLC to acquire the Company’s assets through a court-supervised auction and sale process pursuant to Article 363 of the Bankruptcy Code. The proposed transaction is subject to Court approval.
As part of the proposed sale transaction, Corsica received a debtor-in-possession financing commitment from Blue Torch. Once approved by the court, the new funding, along with cash generated from the company’s ongoing operations, should allow the mattress company to continue operating as usual and maintain its high standards of quality and service. to customers. The Company has sought permission to pay employee compensation and to continue certain court-approved benefit programs without interruption.
“The Chapter 11 process allows Corsica to accelerate its refocusing on key customers, renegotiate agreements, flatten our organization and increase efficiency in all aspects of our operations,” said the CEO. Eric Rhea. “Our primary commitment is to serve our valued customers transparently, maintain partnerships with key vendors, and operate with integrity. As a result, we will provide high-quality sleep products coast-to-coast to Americans ordinary, handcrafted in the UNITED STATES at the best possible price, guaranteeing the Corsica business will be strong for another 50 years.”
For more information on Corsica Chapter 11 case, please visit www.donlinrecano.com/corsicana.
Founded in 1971 in Corsica, Texas, Corsicana Mattress operates ten factories across the country and has become one of the largest mattress manufacturers. The company offers a full line of promotional and supplemental products featuring the latest in sleep technology, including spring, memory foam and hybrid models. The company also offers mattress-in-a-box programs that simplify delivery. In 2021, Corsica acquired Richmond, Virginiabased on Symbol Mattress, creating the nation’s largest manufacturing organization serving consumers looking to buy mattresses for less than $3,000. Corsica leverages its national manufacturing presence to provide industry-leading quality, value, delivery and customer service. To learn more, visit https://www.corsicanamattress.com.
Contact: Kimberley Wray, [email protected]
SOURCE Corsicana Mattress Company