Rockaway Bedding files for Chapter 11 bankruptcy
Top creditors owed more than $8.4 million
Clint Engel -- Furniture Today, April 11, 2007
RANDOLPH, N.J. — Top 100 company Rockaway Bedding has filed for Chapter 11 bankruptcy protection with debts to its top industry creditors of more than $8.4 million.
The Randolph, N.J.-based retailer, with 185 stores and an estimated $143 million in sales last year, filed for protection Monday in U.S. Bankruptcy Court in Newark, N.J., listing assets and debts each in the $1 million to $100 million range.
According to court documents, its largest unsecured creditors are Tempur-Pedic, with a claim of $2.1 million; Sealy and its Stearns & Foster brand, owed nearly $1.8 million combined; and Simmons, owned $1.6 million
A man answering Rockaway President William Paladini’s phone said Paladini no longer works there. He refused to identify himself or comment further. CEO Anthony Licastro could not be reached for comment.
William Katchen, a bankruptcy attorney for the retailer, told the Newark Star-Ledger that Rockaway will continue normal operations as it works to reorganize. He said the reorganization will involve closing unprofitable stores with expensive leases, although none in New Jersey.
“We’re here, we’re staying here. That’s our core,” the paper reported Katchen saying. “The New Jersey market is a keeper for us.”
Rockaway also has stores in New York, Pennsylvania, Delaware, Connecticut, Maryland and Virginia.
Katchen told the Star-Ledger that factors leading to the filing included unprofitable operations and a weak economy.
Here’s a list of Rockaway Bedding’s largest unsecured industry creditors and their claims, according to bankruptcy documents filed by the retailer.
Tempur-Pedic, $2,103,513
Simmons, $1,619,322
Sealy, $1,203,468
Serta, $844,786
Stearns & Foster, $592,778
Fashion Bed Group, $581,268
United Sleep Products, $540,404
King Koil, $536,985
Comfort Solutions by King Koil, $265,846
Excel Bedding, $158,538
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Rockaway in Chapter 11
Apr 29, 2007
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