Shelton, Connecticut-based Latex Foam International Holdings Inc., parent of mattress industry supplier Latex International, said it has reached an agreement with unsecured creditors and submitted a reorganization plan to the U.S. Bankruptcy Court in Connecticut. In May, Latex Foam filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. In June, the company experienced two fires at its Shelton manufacturing facility.
According to a news release, the company is no longer for sale and is focused on executing a growth plan.
“This plan is the culmination of several months of reorganization and restructuring of our business, including the rebuilding of our primary production facility that had been severely damaged by fire. We are grateful to our loyal customers, vendors and employees whose support has been overwhelming during this process,” said David Fisher, Latex International president and chief executive officer.
“We said at the time of our filing that this was a strategic decision to restructure a healthy business that was burdened by financial debt obligations from agreements put in place years ago,” Fisher added. “Relieving ourselves of those burdens puts our company in a position where it can finance itself from operations. The restructuring and post-fire rebuild of our state-of-the-art equipment has allowed us to reduce lead times, enhance customer service and improve our first-quality to 99%. This, coupled with over 99%-on-time delivery, truly does enhance our customers’ experience.”