August 19, 2009
Dial-A-Mattress And 1-800 Mattress Closes Bankruptcy Approved Sale To Sleepy’s
FOR IMMEDIATE RELEASE
Garden City, New York; August 19, 2009 — The Garden City law firm of Moritt Hock Hamroff & Horowitz LLP represented 1-800 Mattress and Dial-A-Mattress, one of the nation’s leading bedding tele-retailers in the successful sale of its assets to an affiliate of Sleepy’s LLC.
On August 18, 2009, Dial-A-Mattress Operating Corp., Dial-A-Mattress International Ltd. and 1-800 Mattress Corp., each debtors in possession under Chapter 11 with cases pending in the United States Bankruptcy Court for the Eastern District of New York (Brooklyn Division), closed a sale transaction valued in excess of $25 million with NewCo Trading LLC, an affiliate of Sleepy’s LLC. The deal, among other things, enabled the Debtors’ prepetition secured debt to be paid in full, resolved all disputes with its key franchisees, while providing unsecured creditors of the Debtors’ estates with an anticipated meaningful return under a plan of liquidation which is expected to be proposed and confirmed by year end. The deal also minimized job losses through the purchaser’s commitment to extend offers of employment to substantially all of the Debtors’ former employees.
Lead Partner on the transaction was Marc L. Hamroff, managing partner of Moritt Hock Hamroff & Horowitz LLP. He was primarily assisted by Theresa A. Driscoll from the firm’s Bankruptcy Group and Brett P. Garver from the firm’s Corporate Group. Sleepy’s was represented by Duane Morris LLP attorneys Gerard Catalanello and James Vincequerra.
“We are delighted to have represented Dial-A-Mattress in this transaction. It was rewarding to work with the highly professional management team at Dial-A-Mattress and to be a part of the rest of the team that successfully closed this deal, especially in light of these challenging economic times” stated Marc Hamroff. “We look forward to a swift confirmation of a plan and distribution to creditors.”
“For over 25 years all of the staff at 1-800 Mattress built a well known and innovative brand for the distribution and sale of bedding. We are confident that together with the Sleepy’s platform, the brand and marketing strategy will flourish” said Joe Vicens, former General Manager and Executive Vice President of Dial and recently appointed as Dial’s Chief Liquidating Officer.