Dallas-based manufacturer Corsicana Mattress Co. has filed a chapter 11 bankruptcy reorganization and said it has a buyer lined up for its business, the Dallas Morning News reported. CEO Eric Rhea said the company voluntarily filed for bankruptcy to help it restructure operations, including efforts to “renegotiate agreements, flatten our organization and drive greater efficiency.” The mattress business has become more competitive in recent years. It was dominated by major manufacturers for decades until new materials and technology allowed for a mattress to be shipped in a box directly to consumers by new internet-based retailers such as Casper, Purple, Nectar and Avocado. Corsicana also sells shippable mattresses under the brand Luuf. The company was founded in 1971 in Corsicana and operates 10 factories in the U.S. employing 865 full-time employees and 58 contract workers. Its mattresses are sold by retailers under the multiple brand names, including American Bedding, Early Bird and SleepInc. After it bought Richmond, Va.-based Symbol Mattress last year, Corsicana Mattress became the largest U.S. manufacturer of mattresses that retail under $3,000. Blue Torch Finance LLC said that it is providing financing for Corsicana to operate during the reorganization and has agreed to buy the company. There will be a bankruptcy court-supervised auction and sale process. Another company could end up with Corsicana, but Blue Torch has said that it will be a bidder.
