ERJ staff report (R&PN)
Jessup, Maryland -- Mattress maker Classic Sleep Products filed a Chapter 11 bankruptcy court protection Jan. 4, asking for approval to sell its assets to a new company, Classic Brands LLC.
Classic CEO Mike Zipelli said the Chapter 11 filing in the US Bankruptcy Court for the District of Maryland is needed for the firm to separate itself from its parent, Dormia Inc., which itself filed for Chapter 11 eighteen months ago.
The new company will gain $10 million in new financing and Classic's long-time Chinese manufacturing partner will have an equity stake in the new company, the company said. Classic uses latex and polyurethane foam, among other materials, for its bedding products.
From Rubber & Plastics News A (A Crain publication)