Sleepy's To Pay $25 Million To Acquire Acquire 1800mattress.com Assets

Furniture World Magazine

Sleepy's, the nation's largest mattress retailer, announced that it has emerged as the highest and best bidder in the judgment of 1800mattress.com, the creditors committee and court-approved investment banker to acquire 1800mattress.com for $25 million, besting four other interested parties. The companies will present their plan Thursday to the U.S. Bankruptcy Court for the Eastern District of New York, whose approval is required. In a day-long auction process on Tuesday, four other retailers and investor groups bid on the assets of 1800mattress.com, the nation's leading premiere telephone, internet and chat retailer of bedding and sleep products. Sleepy's expressed its interest early in the process, going as far as having 1800mattress.com include a copy of its proposed contract of sale in its Chapter 11 filing on March 23rd. Sleepy's also provided $900,000 in debtor-in-possession financing that, together with the company's existing cash flow, enabled 1800mattress.com to fulfill its obligations during the Chapter 11 process. "I believe Sleepy's provided us with the best opportunity to pay our creditors and move our brand forward," said 1800mattress.com Chairman and CEO Napoleon Barragan. "As I said at the time of the filing, there are tremendous business synergies we can leverage by affiliating with Sleepy's. This combination offers us the opportunity to pursue our historic strengths in phone and internet sales." "1800mattress.com is a valuable brand poised for future growth. My team and I look forward to working with its vendors and employees to assure that customers receive the same quality service and merchandise that have made it so successful," said Sleepy's COO Adam Blank About 1800mattress.com: Founded in 1976, 1800mattress.com is the leading national multi-channel (internet, chat, call center and showrooms) retailer of mattresses, box springs and bedding products. It features products by all major brands, including custom sizes, sofa beds, Murphy beds, futons, and adjustable and organic beds. Its award winning customer service is well chronicled in thousands of media articles and books. The company was also the first mattress retailer to introduce a two-hour delivery window, and fast national and international delivery of its products. Its business-to-business sales division supplies schools, hospitals, hotels and other institutions. For more information, please visit www.1800mattress.com. About Sleepy's: Sleepy's, The Mattress Professionals, is a privately-owned company with nearly 700 locations in eleven states, spanning from Vermont to Virginia. Keeping up-to-date on all the latest innovations in sleep technology, Sleepy's carries a broad selection of major mattress brands to fit any price range or comfort level. For over 50 years, Sleepy's has touted the importance of a comfortable mattress, and achieving better health through a better night's sleep.