Jun. 28—Corsicana Mattress Company and certain of its affiliated entities filed for voluntary reorganization Monday under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Texas in Fort Worth.

The company preferred not to comment on the effect the bankruptcy may have on its new Furniture World Headquarters and manufacturing center currently under construction on South Interstate Highway 45 in Corsicana.

"The Chapter 11 process enables Corsicana Mattress to accelerate its re-focus on core customers, renegotiate agreements, flatten our organization and drive greater efficiency in all aspects of our operations," CEO Eric Rhea said. "Our core commitment is to serve our valued customers seamlessly, maintain partnerships with key suppliers and operate with integrity. As a result, we will deliver high-quality sleep products coast-to-coast to everyday Americans, handcrafted in the USA for the best possible price — ensuring the Corsicana business will be strong for another 50 years."

State, local and area business and industry leaders joined the Corsicana Mattress leadership team and employees in October 2021 to break ground on the 376,000-square-foot facility planned to feature state-of-the-art manufacturing equipment, corporate headquarters, a comprehensive training center, a product showroom and the company's signature product innovation lab.

Set on 26 acres, the facility would be the first building in Corsicana's I-45 Industrial Park.

According to a press release by the company, Corsicana Mattress will be filing a proposed asset purchase agreement with an affiliate of Blue Torch Finance, LLC to acquire the company's assets through a court-supervised auction and sale process under section 363 of the Bankruptcy Code. The proposed transaction is subject to court approval.

In connection with the proposed sale transaction, Corsicana has received a commitment for debtor-in-possession financing from Blue Torch. Upon court approval, the new financing, together with cash generated from the company's ongoing operations, is expected to enable the mattress company to continue operating as usual and continue to maintain its high standards of quality and customer service. The company has sought approval to remit employee pay and continue certain court-approved benefit programs uninterrupted.

For more information about Corsicana's Chapter 11 case, please visit www.donlinrecano.com/corsicana.

About Corsicana Mattress:

In 1971, the Moran family started Tipton Manufacturing, which later became Corsicana Bedding and then Corsicana Mattress. Corsicana Mattress operates 10 factories across the country and has become one of the mattress industry's largest manufacturers. The Company offers a full range of promotional and step-up products that feature the latest in sleep technology, including innerspring, memory foam and hybrid models. The Company also has mattress-in-a-box programs that simplify delivery. In 2021, Corsicana acquired Richmond, Virginia-based Symbol Mattress, creating the nation's largest manufacturing organization serving consumers looking to purchase mattresses for under $3,000. Corsicana leverages its national manufacturing presence to provide industry-leading quality, value, delivery, and customer service. To learn more, visit www.corsicanamattress.com.