Free Newsletter
SHELTON, Conn. — Latex Foam International, doing business as Talalay Global, has filed for Chapter 11 bankruptcy protection for the second time in six years, citing disruption from lower-end mattresses.
The company filed for protection Aug. 8, in U.S. Bankruptcy Court in Bridgeport, Conn., listing both assets and liabilities in the $10 million to $50 million range. It owes its 20 largest unsecured creditors more than $1.6 million, according to the claims list. Lender Entrepreneur Growth Capital (EGC) is asserting secured claims of about $9.3 million against the company’s assets.
LFI, with about 150 employees, manufacturers foam mattresses and mattress components. The related Pure Latex Bliss business — also part of the filing — functions as sales office for the sale and distribution of finished mattresses. It’s seeking joint administration of the cases for filings for LFI, Pure Latex Bliss and three other related companies.
The company noted it previously sought Chapter 11 in May 2014, reorganized and later emerged.
“Due to an unanticipated shift of the mattress industry toward disruptive, lower-priced mattresses, however, the debtors revenues decreased to the point where they were in danger of violating a financial covenant with EGC and thereby jeopardizing their continued operations,” LFI said in a court document.
In a statement, Talalay Latex said it filed for protection to restructure the business “to better service its customers, work with its vendors and provide for its employees.” Service to customers won’t be disrupted, and “it aims to exit the Chapter 11 process expeditiously.”
“The challenges facing the mattress industry today are well-documented and have impacted all of us in the bedding category,” said Talalay Global CEO Marc Navarre. “Chapter 11 was sought by our management team and board as part of strategic plan that gives us the opportunity to restructure our balance sheet and position the company for future success. We are confident that business will continue without disruption and that we will emerge from this phase stronger and in a better position to grow.”
Here’s the list of largest unsecured creditors and their claims, according to the filing:
- Centrotrade Rubber USA: $442,334.86
- BASF Corp.: $264,560.93
- Tiarco LLC: $239,902.92
- Synthomer LLC: $180,355.68
- Standard Fiber LLC: $97,659.08
- Alvarez & Marsal Private Equity: $62,280
- Blue-Grace Logistics LLC: $57,542.14
- 8600 Central Venture LLC: $41,710.40
- Unicorr Packaging Group: $39,971.48
- Ruckel Mfg. Co.: $33,112
- United Illuminating Co.: $32,604.84
- Axle Logistics LLC: $23,628
- Evoque Data Center Solutions: $23,579.50
- DeWolf Chemical LLC: $22,752.64
- Global Pallet Solutions LLC: $21,610.65
- PraxAir Inc.:$21,238.72
- Carter-McLeod Paper & Packaging Co.:$21,168.55
- Saatva Inc.: $21,000
- Fifth Third Bank-Credit Card: $20,125.71
- Veritiv Operating Co.: $20,084.10
Senior Editor Powell Slaughter contributed to this report.
