Simmons Bedding exits bankruptcy under new owners

Jan 21 2010
Emily Chasan

Simmons Bedding Co has exited bankruptcy protection under the ownership of an investor group that owns rival Serta, about three months after seeking court protection.

The Atlanta-based maker of Beautyrest mattresses, which filed for bankruptcy protection in November as consumers pulled back on big-ticket purchases, said late on Wednesday that its $760 million deal to be bought by affiliates of Ares Management LLC and Teachers' Private Capital had closed.

Under a prepackaged bankruptcy deal, the company cut its debt obligations to about $450 million from $1 billion. The company took on debt after a 2003 buyout by private equity firm Thomas H. Lee Partners LP.