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April 2, 2009 - 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.
For more information about
the Chapter 11 process, please
visit
www.kccllc.net/mattress.
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