Serta Simmons Bedding to Close 3 Factories after Filing for Bankruptcy
Serta Simmons Bedding announced this month that it will close its factory in Windsor Locks, Connecticut, along with two other facilities later this summer. The closures come as the mattress maker looks to optimize its manufacturing network.
The Connecticut factory employs 157 employees, whose terminations would be effective on June 30, according to a Worker Adjustment and Retraining Notification (WARN) notice. Serta Simmons plans to close the factory on or around Aug. 4.
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“The employees’ obligation to report to work may end sooner, and employees may be subject to recall,” the notice said. “This facility is not represented by a union and neither bumping rights, nor relocation rights, exist for these positions.”
Serta Simmons also plans to close factories in Waycross, Ga., and Kirkland, Quebec. The Georgia facility employs around 180 workers.
The company began consolidating its manufacturing facilities last year, closing factories in Iowa, Virginia and Kansas. It also announced the opening of a new 500,000-square-foot facility in Wisconsin, which is set to open later this year.
In January, Serta Simmons filed for Chapter 11 bankruptcy protection, with the goal of restructuring to reduce debt and “continue making critical investments in its business and brands.” According to the filing, Serta Simmons—which is owned by private equity firm Advent International—owed more than $62 million to its top 10 unsecured creditors, with an estimated 25,000 to 50,000 total creditors.
