LEXINGTON, Ky. (WKYT) - Lexington-based Tempur Sealy is providing millions to help a mattress retailer as it goes through Chapter 11 bankruptcy.
The company announced it will provide $14 million in debtor-in-possession financing to Innovative Mattress Solutions, which is also based out of Lexington. The retailer operates primarily in the southeastern U.S. with 142 stores under the names of Sleep Outfitters, Mattress Warehouse and Mattress King.
“Our stores are open for business as usual, and we are focused on taking care of our valued customers,” IMS CEO Kim Knopf said in a statement to our news partners at the Lexington Herald-Leader. “IMS now has the backing of Tempur Sealy, one of the biggest and best-known mattress manufacturers, and a longtime supplier partner of our company.“
Innovative Mattress Solutions makes up less than two percent of Tempur Sealy's global net sales.
Tempur Sealy CEO Scott Thompson released a statement Friday morning on the financing.
"Innovative Mattress Solutions has served over a million consumers and built equity for their and our brands in their markets. However, we believe iMS' overextended retail footprint and thin capital structure were not designed to effectively respond to the competitive pressures of the recent retail environment. This caused the unexpected need for bankruptcy protection. We will review strategic alternatives related to iMS during its bankruptcy process with a focus on what is best for Tempur Sealy consumers in the affected markets," Thompson said.
IMS isn't the only mattress retailer which has faced financial struggles. Tempur Sealy discontinued its business relationship with retailer Mattress Firm nearly two years ago, sparking a feud between the two companies. Mattress Firm filed for bankruptcy in 2018 after expanding to more than 3,000 stores. It owed mattress maker Simmons $65 million, according to court documents. The retailer said it would close 700 of its 3,000 stores.
Information from the Associated Press was used in this report.