With the approval of the court, a new company, Classic Brands, would own the assets and is backed with an infusion of $10 million in new financing. Classic’s long-time Chinese manufacturing partner will have an equity stake in the new company. The business plan creates a unique opportunity for Classic to solidify its position as the leading value mattress brand in the United States.
The company said there will be no disruption of service to its customers, vendors or suppliers. The company said it expected to exit the Chapter 11 process expeditiously.
Under the business plan, the current management team led by CEO Mike Zippelli will increase its majority ownership stake in the business with funding provided by JMX Capital Partners and Classic’s senior lender, CIT Financial.
He explained that the Chapter 11 process was a necessary step for Classic to separate itself from its parent company, Dormia, which had operated more than 30 stores until shortly after its Chapter 11 filing 18 months ago.
Classic Sleep Products sells its bedding products and accessories under the Dormia, Space Age and Natural Expressions brands and uses the finest materials from around the world including all-natural and high-performance covers, lamb’s wool, Talalay and Dunlop latex, and visco-elastic memory foam.
With its worldwide partnerships, the company is able to offer enhanced features on a wide range of value-driven products comprised of memory and latex foam that deliver unequalled comfort and value. Many of the premium products are manufactured domestically using handmade craftsmanship and custom embroidery.
Classic’s line of specialty foam products represents the fastest growing segment of the bedding market. They are designed to help customers get the maximum benefit out of each and every night’s sleep so they can lead more productive and healthy lives.
