Simmons Bedding Reaches Loan Agreement

December 9, 2008  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on December 10, 2008 Simmons Bedding Company, Atlanta, announced Tuesday that it has reached an agreement with its senior lender that is designed to give the company sufficient time to pursue an organized financial restructuring.

On Monday, President and COO Stephen Fendrich said extending the forbearance period would allow the company to continue to operate and deliver products normally. The agreement announced Tuesday extends the current “forbearance period” to March 31, 2009, subject to certain terms. The agreement is expected to become effective today. With the agreement in place, “Simmons plans to work with its various stakeholders to design and implement the restructuring in a manner that maximizes value and preserves and protects its relationships with customers and suppliers,” officials stated in an announcement.

In November, the company said it was delaying its third quarter earnings announcement and disclosed that it was seeking to amend its senior credit facility after falling out of compliance with a “maximum leverage ratio covenant.”

The company cut its salaried workforce in November in response to challenging economic conditions.