Former Spring Air companies in Ch. 7
By David Perry and Larry Thomas -- Furniture Today, June 8, 2009
WILMINGTON, Del. — Consolidated Bedding and its affiliated entities, which operated as Spring Air across the country, have filed for Chapter 7 bankruptcy liquidation here.
Officials of a new company working to relaunch the Spring Air brand, Spring Air International LLC, said the filing is not expected to affect their plans.
The filing sheds some light on the abrupt shutdown of Spring Air's nine corporate plants and headquarters in early May. It said that Consolidated Bedding and each of the Spring Air subsidiaries “have been running at an operational loss for at least the last year,” and said the companies had undertaken “several strategic initiatives in an attempt to address these losses, including closures of some of their facilities and reductions in force.”
It also said that the company had been seeking strategic alternatives, including identifying potential purchasers. The filing said that The Riverside Co., a financial firm, had previously made an offer to buy the company “but subsequently elected not to purchase substantially all of the assets of the business for approximately $8 million and continue operations at the subsidiaries' Ohio and Texas facilities.”
Former Spring Air officials said the collapse of the talks with Riverside led to the decision to cease operations of the Spring Air corporate facilities.
The Spring Air companies separately filed a total of 20 Chapter 7 petitions in bankruptcy court here. They did not list liabilities, but each of the filings said that estimated liabilities were $50,000 or less.
One of the filings in the case says the debtors “have sold substantially all of their assets and ceased their business operations.” The new Spring Air entity, Spring Air International LLC, said it has purchased the global rights to Spring Air's intellectual property.
After Spring Air shut its corporate-owned plants, the company's three U.S. and two Canadian licensees have continued to operate.
The filings include these entities: Consolidated Bedding, Ackerman Mfg. Co., Alabama Bedding Mfg., American Bedding Inds., Associated Trucking Co., Atlas Bedding Mfg., Chattam & Wells, Nature's Rest, Nature's Rest Marketing, Spring Air Bedding Co., Spring Air California – Deluxe Bedding Co., Spring Air Mattress Co., Spring Air Mattress Co. of Colorado, Spring Air Mountain West, Spring Air Partners-California, Spring Air Partners-New Jersey, Spring Air Partners-North America, Spring Air Partners-Texas, Spring Air West and the Spring Air Co.
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UPDATE: Wickline bedding ceases operations
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Spring Air's Canadian licensees still open
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