Company of Beautyrest Mattress Announced Plans of Filing Chapter 11 Bankruptcy
The company who owns Beautyrest Mattresses, Simmons Co., has already brought forth its plans on filing for Chapter 11 bankruptcy . This has yet again resulted from change of consumers’ spending habits putting off purchases for luxury items, personal effects and other expensive products which are not part of the basic necessities in life.
Simmons Co. has been feeling the slump in its sales which significantly fell in the previous months. This resulted to growing amount of debt and net loss for the company. It is expected to confer with its share holders and bank lenders prior to filing of Chapter 11 bankruptcy . This move is positively seen to help lower the company’s incurred debts and continue on with its operations.
The previous year posted a $12M profit for the company, however, this was not sustained due to the global economic recession that occurred. It already caused the closure of an office in Atlanta with some employees being laid off based on reports.
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