Janesville Employer, Serta Simmons Files for Bankruptcy
The Wall Street Journal is reporting that Serta Simmons Bedding LLC filed for chapter 11 bankruptcy on Monday in the U.S. Bankruptcy Court in Houston, Texas. The bedding manufacturer is seeking to implement a reorganization plan to cut its nearly $1.9 billion in debt to $300 million.
Good news for Serta Simmons' employees comes from Reuters who is reporting that they "have lined up $125 million in financing to keep operating, including to pay its 3,600 employees."
Not sure how this will affect plans to open " a massive new, state-of-the-art facility in Janesville, which is expected to bring scores of new jobs to Rock Co. soon after it opens, with the potential of more to come after that" that was reported on 4/12/2022 by nbc15. Channel3000 reported that the new facility "slated to open in 2023, will initially employ over 300 people."
In a Chapter 11 bankruptcy, a business may continue to operate while creditors and the court must approve a plan to repay the business's debts. Chapter 11 bankruptcy is rarely used by individuals. The vast majority of consumer bankruptcies are either a Chapter 7, usually the quickest kind of bankruptcy, or Chapter 13 that puts the debtor(s) in a 3 to 5 year payment plan.