Dial-a-Mattress, known for its “leave off the last ‘s’ for ‘savings’” jingles, has filed for bankruptcy and intends to sell itself to Sleepy’s, says the NYT.
The company, owned by Napoleon Barragan, has had a steep drop in sales and more stringent terms from vendors, according to court documents.
Creditors filed an involuntary Chapter 7 bankruptcy petition against Dial-a-Mattress last week, seeking $1.7 million. The company is seeking to convert that to a Chapter 11 reorganization.
Sleepy’s said in a statement on Tuesday that it would provide debtor-in-possession financing to help Dial-a-Mattress operate. The financing is subject to bankruptcy court approval.
“We’ve determined that Sleepy’s offers us the best opportunity to recapitalize and move our business plan forward,” Mr. Barragan said. “This combination allows us to realign our capital structure and to pursue our historic strength in phone and Internet sales.”
Good night, 1-800-Mattress.