Media
Press Release
January 21, 2010
To Our Valued Stakeholders:
It is with great pleasure that I announce that Simmons Bedding Company has today emerged from Chapter 11 as a much healthier company, both financially and operationally. Our debt has been reduced from $1 billion to approximately $450 million and we have the backing and support of our new private equity partners - Ares Management and the private investment arm of Ontario Teachers Pension Plan.
Although we were technically in the bankruptcy process for a relatively short time, we spent all of 2009 working through the financial restructuring. During this time, we took great care to minimize the impact of the restructuring on our customers, suppliers and associates, especially since we knew that the choices we made throughout the process would forever affect our interactions with all of you. As such, it was important for me and the leadership team to honor customer programs, return as much value as possible to creditors and suppliers, and to retain our workforce. Our success in achieving these goals was critical to preserving the 140-year legacy of Simmons as one of our country's leading consumer brands.
Our ability to emerge from bankruptcy quickly and without negative impact on our day-to-day operations is due in no small part to the support we received from our stakeholders throughout this challenging year. Our customers continued to believe in the power of our brands by promoting our products. Our suppliers ensured that we were able to continue to produce mattresses that meet our high manufacturing standards by shipping sufficient quantities of raw materials on time and without fail. Our associates remained committed to the company and its future. All of you played these critical roles amidst a great deal of uncertainty and speculation. For this, we thank you.
2010 is lining up to be an exciting year for Simmons. We will be rolling out a new Beautyrest® line that is sure to impress our customers and consumers. At the same time, we will continue to strive for continuous improvement across our business and continue to produce products that are relevant to our dealers. We look forward to having you join us in this exciting future.
In closing, I would like to once again offer my sincere thanks to all of you for your valued contributions as we worked together to reach this significant milestone. With your partnership, we achieved the best possible outcome.
To learn more about our efforts, I invite you to read our press release and browse our Frequently Asked Questions. If we can answer any additional questions, please contact customerassistance@simmons.com. Again, thank you for your interest and continued support of Simmons.
Our best wishes for a healthy and prosperous 2010.
Steve Fendrich and The Simmons Leadership Team
