Sleepy’s won the Dial-A-Mattress auction amongst six other bidders. Its original bid was of $2.1 million which closed at $25 million.
Marc Hamroff, of the firm Moritt Hock Hamroff Horowitz revealed that the bidding was conducted with the criteria offering jobs to substantially all employees of Dial-A- Mattress.
Unsecured creditors would benefit 85 % of the money owned from the sale. Sealy Corporation (ZZ.N), Serta Mattress, Simmons Manufacturing Company and Tempur Pedic International (TPX.N) are the unsecured creditors to benefit from the auction.
Dial-A-Mattress established their telephone sales of bedding under the 1-800-Mattress brand name. The company filed for bankruptcy protection in March. The Brooklyn bankruptcy court is to approve the bidding, which took place on May 26, 2009.
