Jan 24, 2023 - Economy

Mattress maker Serta Simmons goes bankrupt

Animated illustration of a mattress on fire.

Illustration: Aïda Amer/Axios

Serta Simmons Bedding, the Georgia-based mattress maker owned by private equity firm Advent International, has filed for Chapter 11 bankruptcy protection.

Why it's the BFD: There's no niche industry that's caused private equity more pain than have mattresses, going all the way back to the infamous "burning bed" deal in the 1980s.

  • Somehow, it doesn't feel like Advent will be the last PE firm that tries (and fails) to find money stuffed inside.

Details: The prepackaged bankruptcy filing includes $125 million of debtor-in-possession financing and another $125 million once it exits Chapter 11.

Backstory: Advent bought the company in 2012 via a $3 billion deal, and later added DTC mattress seller Tuft & Needle. It later restructured some of its debt, via a transaction that led to credit lawsuits.

  • Per Bloomberg: "Serta's fiscal woes were exacerbated during the pandemic. More recently decades-high inflation has weighed on the mattress retailer, which has a sizeable debt load maturing this year."
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