Serta Simmons Files for Bankruptcy Amid Financing Controversy
- Company filed in Texas as it seeks to cut debt to $300 million
- Apollo, Angelo Gordon sought to block pandemic-era financing
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The emergency funding that Serta Simmons Bedding received during the pandemic triggered a blowback that the company is still struggling to recover from.
The mattress manufacturer filed for bankruptcy on Monday, after clashes with lenders including Apollo Global Management Inc. left it with no other options for cutting its debt load while grappling with an economic slowdown that is crimping sales. Serta said the Chapter 11 filing will allow it to continue operating while it fixes its balance sheet, cutting debt to $300 million from $1.9 billion.