Mattress Discounters gets financing, makes payment
By Furniture Today Staff -- Furniture Today, January 20, 2002
UPPER MARLBORO, Md. — Bedding retail heavyweight Mattress Discounters, which has been struggling financially for months, has secured additional financing, meeting a Jan. 15 deadline for an $8.9 million interest payment to bondholders.
There had been speculation the retailer would miss the payment and seek Chapter 11 bankruptcy protection. Chief Executive Officer Steve Newton said the new financing will "enable Mattress Discounters to continue to execute its expansion plans, further solidifying its leadership position in the mattress industry."
Newton said the new financing came in the form of a $10 million increase in the company's revolving credit agreement. Along with the new loan commitment, he said the retailer is now in full compliance with all financial covenants associated with its debt.
The company, which operates some 290 stores in 14 markets, is the nation's largest chain of sleep shops. It also owns a pair of factories that produce its private-label Comfort Source line. Its parent company, Bain Capital, also is the principal owner of Sealy, which makes the only branded merchandise carried in Mattress Discounters stores.
Through the first nine months of 2001, sales were $190.6 million. Total debt at the end of the third quarter was about $152 million.
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