From Home Furnishing Business
Corsicana Files for Bankruptcy, Proposed Acquisition by Blue Torch Finance
2022 by Laurie Northington in Acquisition, Bankruptcy, Industry
Corsicana Mattress Company and certain of its affiliated entities filed for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Texas in Fort Worth.
The filing indicated that Corsicana will be filing a proposed asset purchase agreement with an affiliate of Blue Torch Finance, LLC to acquire the Company’s assets through a court-supervised auction and sale process under section 363 of the Bankruptcy Code. The proposed transaction is subject to Court approval.
In connection with the proposed sale transaction, Corsicana has received a commitment for debtor-in-possession financing from Blue Torch. Upon Court approval, the new financing, together with cash generated from the Company’s ongoing operations, is expected to enable the mattress company to continue operating as usual and continue to maintain its high standards of quality and customer service. The company has sought approval to remit employee pay and continue certain Court-approved benefit programs uninterrupted.
“The Chapter 11 process enables Corsicana to accelerate its re-focus on core customers, renegotiate agreements, flatten our organization and drive greater efficiency in all aspects of our operations,” said CEO Eric Rhea. “Our core commitment is to serve our valued customers seamlessly, maintain partnerships with key suppliers and operate with integrity. As a result, we will deliver high-quality sleep products coast-to-coast to everyday Americans, handcrafted in the USA for the best possible price—ensuring the Corsicana business will be strong for another 50 years.”