We understand that you may have specific questions about our restructuring process. We hope you find the Frequently Asked Questions below useful. If you would like to inquire about anything not covered below, please direct inquiries to Simmons customer service at customerassistance@simmons.com.
What impact will Simmons' restructuring have on me as a consumer or prospective buyer of a Simmons mattress?
In short, it will have no impact. The restructuring of our company will be invisible to you. We continue to invest in our manufacturing operations, marketing programs, and launching new products in the marketplace. We are excited about the recent launch of ComforPedic Loft™, a line of memory foam mattresses priced with the value-conscious consumer in mind, and look forward to introducing a new BeautyRest® line in early 2010. Our innovation pipeline is strong and we look forward to building on our 139-year history as a bedding leader.
What company is buying Simmons?
Simmons is being purchased by several equity investors led by Ares Management and Ontario Teachers' Pension Plan (referring to as AOT), two separate private equity investors based in Los Angeles, California and Toronto, Ontario respectively. AOT also owns Serta. Serta and Simmons will operate as separate entities under one holding company and their products will continue to compete with one another in the market.
Why is Simmons filing for Chapter 11 as part of the transaction?
Chapter 11 is a necessary administrative step to put the financial restructuring and new ownership structure into effect. It will have no impact on the day-to-day operations of the business. In fact, within the new structure, we will continue to invest in our manufacturing facilities, bring new products to market, and create new opportunities for our associates. We plan to emerge from Chapter 11 a stronger and healthier company with 60 days of our November filing date.
What impact will the restructuring have on the Company's ability to serve consumers?
The restructuring process will have no impact on our ability to serve consumers. Warranties and other obligations to consumers will continue to be honored, and Simmons and its associates will remain focused on providing the unparalleled service, innovation, and products for which we are known.
Will you still be honoring product warranties?
Absolutely. We're proud of the great value that our warranties represent and will honor all product warranties in full.
How will this affect the Company's ability to meet consumer demand?
We will continue to manufacture and ship our products without interruption. Our suppliers have pledged their support throughout this restructuring process.
Will there be any changes to Simmons' products?
In fact, there will be changes—for the better. At Simmons, we're always looking for the next big idea in beds. As the innovator of the electric blanket, queen- and king-sized beds, and the no-flip mattress, we pride ourselves on our ability to design products firmly rooted in consumer insights. We're excited to continue this tradition with the launch of new lines at this winter's Las Vegas Furniture Market.
Is management still in place and running the Company?
Simmons' seasoned leadership team, which has 150+ years of collective experience, and its Board of Directors are entirely committed to meeting your needs and will continue to run the business.
What impact will the Chapter 11 filing have on the communities in which Simmons operates?
We will operate the business in the normal course so we don't foresee any effects that a filing will have on the community. We will provide information as it becomes available and remain committed to being a good corporate citizen in our communities.
