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Sleep Innovations, a leading manufacturer and marketer of memory foam bedding, sleep products and accessories, has emerged from its voluntary Chapter 11 financial reorganization after only five months under the restructuring guidance of Carl Marks Advisory Group LLC (CMAG).
After suffering consistently declining profits and cash flow, CMAG was enlisted in a chief restructuring officer capacity in June 2008. Carl Marks took control of the struggling company in August, when Richard A. Heller, a CMAG partner, was named interim chief executive officer.
"We jumped in creating immediate cost reductions and developed a long-term turnaround plan," Heller said, adding that this plan included putting the company into a pre-packaged Chapter 11. "Immediate results were demonstrated early in the execution of the turnaround plan, and with a decrease of the company's debt in bankruptcy, a healthy balance sheet was created."
The turnaround plan improved company operations within five months and leaves Sleep Innovations poised for long-term recovery and growth, despite a challenging economic environment.
"We quickly got back to basics and developed a structure to manage operations in a much tighter fashion," Heller said. "We credit this success to the hard work of the entire Sleep Innovations team, as well as the lenders and legal and financial advisors involved in the program. It's an exciting new chapter for the company."
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