Home Improvement Company Now Files For An Unexpected Bankruptcy

June 17, 2024

A home improvement company now files for an unexpected bankruptcy in Texas due to economic challenges and rising debt.

Family-owned-and-operated Factory Mattress has been operating mattress stores in Texas since 1977 — the company has now filed for chapter 11 bankruptcy.

The chain operates 21 stores serving the Austin and San Antonio markets.

“When you visit any one of our locations throughout Central Texas, you’ll discover the largest selection of discounted name-brand sleep sets; with mattresses and foundations from Sealy, Simmons, Tempur-Pedic, iComfort by Serta, and Sleep Designs,” the company says on its website.

“And it doesn’t stop there. … [From] bed frames and memory-foam pillows to mattress protectors and adjustable bases, we carry just about every item needed to create the perfect sleep environment.”

The company built its business by offering quick delivery on its own trucks and by giving customers a year-long, no-questions-asked return period.

It now has filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Western District of Texas.

Steve Frey, who founded and owns the chain, cited road construction limiting access to his stores as one of the problems that led to the bankruptcy filing.

“The reorganization is a mandatory step to get economic relief.

Our stores will have no interruption in operations for sales and support to our customers,” he told Furniture Today.

In its bankruptcy filing, Southwest Mattress, the parent of Factory Mattress listed estimated assets of $1 million to $10 million with estimated liabilities totaling $1 million to $10 million.

It has an estimated 50 to 99 creditors.

Those are standard ranges that are choices on the bankruptcy form.

Among its liabilities, the company shows $434,458.70 owed to Tempur-Pedic, $134,964 to Sealy, $72,755 to Kingsdown, $65,734.96 to M.D. Mattress, $49,264 to Serta, $41,366 to Nectar and $35,376 to Sleep Designs.

Lines of credit and rents make up most of the rest of its top 20 unsecured debts.

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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois

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An unexpected restaurant now abruptly closes 7 locations in one state after revealing plans to shutter a total of 36.

TGI Fridays is closing a total of seven restaurants in one state as part of the company’s ongoing growth strategy.

This comes after the chain abruptly closed 36 locations across 12 states in at the beginning of the year, per The-Sun.

The restaurant chain will pull the plug on seven locations across the state of New Jersey in the coming weeks.

Today, Fridays will welcome in famished diners at its location in Brick for the final time.

“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Weldon Spangler, CEO of TGI Fridays earlier this week.

“We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering ‘That Fridays Feeling’ that our fans know and love.”

Before the closures, TGI Fridays had about 270 US locations, according to the company’s website.

“As part of the store closures, TGI Fridays is offering more than 1,000 transfer opportunities, which represents over 80% of total impacted employees,” the company previously said in a statement.

“Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise,” said Ray Risley, US president and chief operating officer, in the release.

Eight other locations were sold to former CEO Ray Blanchette, a longtime stakeholder who will acquire the previously corporate-owned restaurants.

The sale comes as major changes have been made to the brand’s leadership, including the news of Weldon Spangler being made CEO.

“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Spangler in a statement.

Also Read: Retirees Will Now Receive More Money For Social Security

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