Banner Bedding Escapes Chapter 11 Axe
Perhaps companies such as General Motors who are facing restructuring problems can get some tips from the team over at Banner Bedding which incidentally escaped the Chapter 11 axe thanks to a wisely restructured balance sheet. The reorganization plan proposed by Weintraub and Selth was accepted by their creditors, paving the way for their continued operations during these hard times.
Banner Bedding, a mattress company founded by the Scorzeill family, commenced doing business in 1926 in Ohio. In 1964, the company moved to California and has been managed by three generations of the Scorzeill family to date. The company, which originally manufactured mattresses for the wholesale market, grew to encompass 37 retail stores to compliment its factory and production facility.
The general economic downturn following Banner’s rapid expansion created a need to revisit the company’s operational methodology. On June 9, 2008, Banner filed its petition for relief under Chapter 11 of the Bankruptcy Code, choosing Weintraub & Selth to lead it through chapter 11’s unchartered waters.
Thank God for their swift actions and kudos to the people who put together a wise restructuring plan for the company’s sake!
This event is not affiliated with Bedzine.
(Source) Press
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