The federal bankruptcy court in Hartford has approved the sale of East Hartford mattress retailer Better Bedding to rival retailer Sleepy’s for $965,000, according to Furniture Today.
Better Bedding, which operates 10 stores in Connecticut, was sold to Sleepy’s during a court supervised auction April 28, according to an order signed by U.S. Bankuptcy Judge Albert Dabrowski.
It was not immediately clear if Sleepy’s will keep the stores open, according to Furniture Today, which is a trade publication that tracks the industry.
Sleepy’s did not immediately return a call seeking comment from HBJ Today this morning.
Better Bedding has been operating under Chapter 11 bankruptcy protection since March 2009.
The retailer had submitted a reorganization plan and disclosure statement in December that would have kept the company operating independently and paid unsecured creditors over a three-year period.
However, days before a January hearing on the disclosure statement, the unsecured creditors committee, headed by mattress producer Sealy, told Dabrowski the committee had received a purchase offer from Sleepy’s. Over the objections of Better Bedding, the committee then withdrew its support for the original reorganization plan and backed the Sleepy’s offer.
