RoomStore Puts Mattress Discounters Deal to Rest

December 3, 2008  by in UnCategorized   

By Home Furnishings Business in Bedding on December 2008 A deal for Richmond, Va.-based RoomStore to purchase the Mattress Discounters chain for about $4.5 million has been approved by the U.S. Bankruptcy Court in Maryland, according to court records.

Mattress Discounters, which filed for Chapter 11 in September, will be operated as a 72-store chain involving a partnership with investor Ray Bojanowski, who will serve as chief executive officer, according to an article in The Richmond Times-Dispatch Wednesday. About 18 stores will be closed.

In May 2007, Mattress Firm, the nation’s second-largest bedding chain, made a bid for Mattress Discounters valued at a reported $80 million, but later decided against completing the deal. In September, Mattress Discounters made its second trip to bankruptcy court after filing for Chapter 11 in 2002 and emerging a year later after shutting or selling off nearly half of its 300 locations at the time, including all of its stores in California.