Furniture chain The RoomStore to acquire Mattress Discounters
Bankruptcy court approves $4 million asset sale
Larry Thomas -- Furniture Today, December 3, 2008
UPPER MARLBORO, Md. — A U.S. Bankruptcy Court judge has approved the sale of bedding retailer Mattress Discounters to a unit of Richmond, Va.-based Top 100 chain The RoomStore.Mattress Discounters, which has about 80 stores in Virginia, Delaware, Maryland and Washington, D.C., has been operating under Chapter 11 bankruptcy protection since September.
According to court documents, The RoomStore will pay $4 million for substantially all of the company's remaining assets. The proposed sale agreement was filed with the court in early November, and no other bidders emerged.
It wasn't immediately clear how many Mattress Discounters locations will remain open, RoomStore officials have said they don't intend to change the name.
RoomStore, which has 69 stores in eight states, said it is joining with an unnamed investor to acquire the bedding retailer.
Mattress Discounters closed its approximately 50 New England stores shortly after the Chapter 11 filing and said it had hoped to continue to operate its remaining stores. However, the company told the court it had been unable to obtain financing for that effort.
Sleep shop sale OK'd
12/07/2008RoomStore unit bids for Mattress Discounters
11/26/2008Mattress Discounters reorganization vote due
01/18/2003Mattress Discounters files Chapter 11
09/11/2008Mattress Discounters files for Chapter 11
09/14/2008
