Mattress Discounters reorganization vote due
By Furniture Today Staff -- Furniture Today, January 20, 2003
Upper Marlboro, Md. — Bedding retailer Mattress Discounters has won U.S. Bankruptcy Court approval to submit its reorganization plan to creditors for a vote.
If creditors approve the plan, the retailer could emerge from Chapter 11 bankruptcy protection by the end of March, five months after its bankruptcy filing.
During that period, Mattress Discounters has sold or closed about 140 of the 240 stores it operated when the filing was made. The company now has about 100 stores in the Washington/Baltimore, Pittsburgh, Richmond, Va., and New England markets.
"We will emerge from Chapter 11 protection as a very efficient specialty retailer with an appropriate capital structure," said Steve Newton, president and chief executive officer.
Newton said creditors holding an estimated 60% of the unsecured claims already have agreed to vote in favor of the plan, as have all the company's secured lenders.
Voting materials have been mailed to creditors, and the court has set a hearing March 3 to confirm the reorganization plan.
