Hollander Sleep Products has filed for bankruptcy, citing a severe cash squeeze due in part to substantial price increases for materials, CFO.com reported. The Boca Raton, Fla.-based supplier of pillows, mattress pads and other bedding products said it has only $523,000 in cash on hand but secured lenders have agreed to provide it with $118 million to keep it operating during the bankruptcy process. A chapter 11 reorganization plan negotiated with lenders would convert about $166.5 million of Hollander’s $233 million debt burden to equity but the company said that it “will also be running a marketing process to determine whether there are alternative transactions to ensure that the company maximizes value.” Hollander, which was founded in 1953, claims to be the largest bed pillow manufacturer in the world, with an estimated 35 percent share of the $1 billion pillow market. It had $526.9 million in net revenue in 2018, producing items for licensed brands such as Ralph Lauren, Simmons, and Calvin Klein and for its own brands.
