Simmons Plans To File For Bankruptcy Protection

ATLANTA (AP) — Simmons Co., the maker of Beautyrest mattresses, said Friday that it plans to file for Chapter 11 bankruptcy protection, a move that will put new owners in charge of the bedding unit and significantly lower the company's debt.

Sales have slumped for mattress makers as consumers pull back on their spending during the recession, especially on big-ticket items like mattresses.

The plan, which will not affect the company's operations, is expected to reduce its total debt from about $1 billion to $450 million. It must receive bankruptcy court approval.

Privately held Simmons said the restructuring would include the acquisition of Simmons Bedding Co., its subsidiaries and parent company Bedding Holdco Inc. by affiliates of private equity fund Ares Management LLC and Teachers' Private Capital, the private investment branch of the Ontario Teachers' Pension Plan.

The company has been held by private equity firm Thomas H. Lee Partners — or THL — since 2003, when it bought Simmons Co. for $1.1 billion from Fenway Partners, a New York private investment firm. Fenway had bought Simmons in 1998 from investment firm Investcorp. for $513 million.