United Sleep closes
Execs mum on company's future
By David Perry -- Furniture Today, May 14, 2007
Denver, Pa. — United Sleep Products, a regional bedding producer with national aspirations, reportedly has closed its factories here and in Fort Wayne, Ind.
The bedding producer, based here, acknowledged in February it was in "a temporary cash flow imbalance." Lisa Kaufman, CEO of United Sleep, said at that time that the company was taking steps to address its problems and had installed a new management team.
She gave an optimistic forecast for the company, saying, "This will be a banner year for United Sleep."
Kaufman was unavailable for comment last week on the reported plant closings.
A former employee said the factories were closed last Wednesday and that employees learned the news when they reported for work that morning. Employees were told they were permanently laid off "due to a persistent decline of incoming volume of business."
A recorded message at United Sleep's headquarters said last week that the offices "are currently closed."
Meanwhile, Pete Primeau, named acting vice president of sales for United Sleep in February, said he had resigned from United Sleep earlier this month. His company, Primeau Furniture Sales, now represents bedding producer Southerland.
United Sleep, which industry observers said had a volume of about $40 million in 2005, was purchased by Northlight Capital, a Chicago-based private equity firm, in January 2006. Kaufman, managing partner of Northlight Capital, was named chairman of United Sleep at that time. About a year later, following the departure of Marc Werner, she added the CEO title.
Kaufman said earlier this year that 2006 had been "a challenging year for the company and the industry." She said the cash flow imbalance was caused "by the over-purchasing of inventory, primarily from China," and added that the company was "righting the situation by utilizing the inventory and in some cases, selling the excess so that we can repurchase as we need it."
Kaufman also said United Sleep would be expanding its private label business. She praised the new management team, including President John Katerenchuk, who was formerly vice president of operations at United Sleep.
