Spring Air's sudden closing triggers mad scramble for business
Spring Air’s unexpected shutdown triggered a cell phone feeding frenzy as mattress manufacturers, retailers and suppliers scrambled to replace the nearly $200 million in wholesale bedding sales that were taken out of the market overnight.
As soon as word began to leak out Monday and Tuesday that Spring Air’s nine corporate factories had closed, phone minutes were gobbled up faster than Ms. Pac-Man as key players in all three segments of the business tried to figure out what was happening.
Retailers needed shipments, competing manufacturers worked overtime to grab additional market share, and suppliers suddenly had to adjust production levels while realizing they will receive little, if any of the money Spring Air owes them.
And it hasn’t helped that Spring Air executives disappeared shortly after written notices about the closings were posted at each factory entrance. They didn’t even have the courtesy to tell their employees in person.
About the only insight into the reasons for the shutdown were contained in a letter sent to the Ohio Department of Job and Family Services that notified the agency of the factory closing in Columbus.
The letter says, in part, that Spring Air “very recently has become unable to obtain the financing and increased revenue it has sought.”
It goes on to say that the investment firm American Capital, Spring Air’s principal owner, pulled the plug on additional financing on April 28 and the mattress producer was unable to obtain financing from other sources.
The letter also says the company has filed for bankruptcy protection, but as of Friday afternoon, my extensive search of various U.S. Bankruptcy Court data bases turned up nothing related to Spring Air or Consolidated Bedding, the former Spring Air licensee who led a buyout of all but three other licensees in June 2007.
(The three licensees who weren’t part of the buyout, by the way, are operating their factories as usual since they have the rights to use Spring Air’s name, patents and trademarks regardless of what happens to the licensor.)
Aside from Furniture/Today’s coverage, including this story about Leggett & Platt increasing its bad debt reserve by $8.5 million, media outlets in cities where Spring Air had corporate factories also have reported on it.
The St. Petersburg Times had the most comprehensive story, but other coverage included stories in the Columbus Business Journal and the Tacoma News Tribune.
springairrevolt commented:
I bought one of their mattresses in 2008. Made in Chelsea MA. It was a piece of junk. Tried to return it under warranty...LOL. A joke on me.
Threw it out after 3 weeks. Sad company. Saved your back when they went under.
Another DIS-Satisfied ex-customer commented:
Spring Air promised us a replacement also....of course nothing ever sent.....Pathetic excuse for a business!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
portlandOR commented:
Same here. no one returning calls. we are supposed to get a replacement bed.if anyone knows of anything we can do, please post. Thanks.
Pam Roberts commented:
I am also awaiting delivery of a mattress replacement. Please let us know what to do. My current mattress is hurting my back due to the warranty issues.
Larry Thomas commented:
To the best of my knowledge, the company still has not filed for bankruptcy. And since mattress factories keep little, if any inventory in stock, I really don't know how you are going to obtain a replacement. Even if Spring Air does file for bankruptcy, any money raised from liquidation sales probably will to go to the secured lender, which is a private equity firm called American Capital. Unfortunately, suppliers, former employees and consumers like you probably will wind up with nothing.
Betty Fisher commented:
I just spent a year trying to get Spring Air to honor a warrenty issue and finally got them to agree when Call for Action contacted them in Tampa, FL. I was told on April 14 that a new mattress was ordered for me and would be delivered in 2-3 weeks. Now I obvioulsy can not get anyone to answer the phones and although I tracked the consumer number to a marketing office in Niles, MI no one will return my calls. Anyone have any idea how I can get a mattress from the liquidator. I can't even find where the bankruptchy is being filed. My best wishes to all the former employees. No one deserves to be treated this way.
Lisa S. commented:
It was interesting being in the middle of the frenzy at the conference. It was also interesting hearing other manufactures who want to gobble up the market share. I cannot wait to see how the guys at Spring Air, NC handle it all. They are great business people. I wish the franchisees the best of luck in trying to keep a good name, with no help from National.
An ex-springair employee commented:
It was a total disgrace the way springair management handled the closing of their plants. Most of the upper management bailed out months ago. The new group of so called executives mico managed the company into ruins. Poor management and the penny wise, dollar stupid mentality is what killed springair. I worked in one of the spring air facilities. The constant turnover of plant managers and discriminatory treatment of its employees just added to the pain of going to work everyday. Roach infested break rooms and rats running through out the plant was an everyday occurance. What was the fix? Roll some fresh paint on the walls and set a mouse trap. The exterminator didn't help, because just like the Christmas party caterer he wasn't paid. It is sad that many hard working people lost their jobs. But, looking on the bright side, I guess it was a blessing. Good luck to all of the hard working ex-springair employees. As far as its management, you finally got what you deserve.
