Mattress Gallery Reorganizing

November 4, 2007  by in UnCategorized   

By Home Furnishings Business in Bedding on November 2007 Stung by the housing slump, Mattress Gallery, a Los Angeles-based chain of 52 stores, announced Friday it has submitted a plan of Chapter 11 reorganization in the U.S. Bankruptcy Court in Delaware.

With court approval, the plan’s provision for debtor-in-possession financing would allow it to continue normal operations and extend its relationships with principal vendors. Mattress Gallery CEO Jim Ristas said he “look(s) forward to emerging from bankruptcy and operating Mattress Gallery in a new corporate structure with the additional resources of a strong operating partner going forward.”

A report published in the Los Angeles Times Saturday stated that Ortho Mattress, a Cerritos, Calif.-based retailer with more than 50 locations, plans a substantial investment in the the reorganized company.