Big Spring Air licensee seeking reorganization
By David Perry -- Furniture Today, March 28, 2004
NEW YORK — NEW YORK — Spring Air Partners-North America, bedding major Spring Air's largest manufacturing licensee, has filed a voluntary petition for reorganization under Chapter 11 bankruptcy protection.
New York-based Spring Air Partners, which operates four U.S. manufacturing facilities, experienced "financial distress," said Jim Nation, president of licensor Spring Air. He expressed hope the Chapter 11 petition will be approved quickly, noting the licensee "has the support of its largest creditors."
Spring Air Partners said it intends to continue normal operations throughout the reorganization and expects that customer shipments and payments to suppliers will continue without interruption.
The petition was filed in U.S. Bankruptcy Court for the Southern District of New York. The company said it is seeking immediate court approval for $3 million of debtor-in-possession financing to be provided by SAPNA Debt Holdings LLC, an affiliate of H.I.G. Capital, the company's senior lender.
According to the filing, Spring Air Partners had gross sales in the fiscal year ended Dec. 26 of $166 million. It listed assets in the range of $10 million to $50 million and debts in the $50 to $100 million range.
Nation said Spring Air Partners currently operates plants in North Arlington, N.J., Carrollton, Texas, Oklahoma City and Los Angeles. Earlier, it closed facilities in Philadelphia and Columbus, Ohio, as it restructured its business. The company is shipping to the Philadelphia market from its New Jersey plant, and Spring Air's Florida licensee is taking over sales responsibilities for Ohio and will operate out of the Columbus facility.
There was some disruption of shipments last month in the Ohio and Philadelphia markets as a result of those changes, Nation said, but shipments have resumed.
Spring Air Partners said in the filing that it owns exclusive worldwide rights to the premium bedding brand Chattam & Wells. That line is offered by several Spring Air licensees.
In addition to the DIP credit facility, Spring Air Partners anticipates receiving support from key trade and other creditors, and from licensor Spring Air. As a result, it intends to pursue a consensual plan of reorganization, and believes the DIP credit facility, along with third-party support, will give it sufficient liquidity to meet working capital needs as it reorganizes.
Les Ayers, CEO of Spring Air Partners, said the reorganization "will allow Spring Air Partners to continue business as usual, and ultimately emerge a strong company."
The company has not set a timetable on when it expect to emerge from Chapter 11.
Nation said Spring Air "looks forward to working with H.I.G. Capital in this restructuring, and working toward getting Spring Air Partners to return to the dominant position in the markets it serves."
John Black, managing director of SAPNA Debt Holdings, said, "We look forward to working with Spring Air Partners in its efforts to execute a comprehensive restructuring that will serve as a strong foundation for the company to fully realize its growth potential."
Industry companies listed in the filing as among Spring Air Partners' 20 largest unsecured creditors include Foamex, owed about $4.2 million; Spring Air Co., $2.7 million; Capital Foam Products, $1.4 million; Bekaert Textiles, $744,683; Spring Air Canada, $343,231; Burlington Inds., $289,372; Culp, $169,614; and Tietex International, $115,535.
-
Carls to shrink in Ch. 11
Jun 8, 2011 -
Hendricks Furniture files for Chapter 11
Jun 10, 2009 -
Joan Fabrics files Ch. 11
Apr 29, 2007 -
CIT Group files for Chapter 11 protection
Nov 2, 2009 -
Hendricks in Chapter 11
Jun 15, 2009
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
