CENTRAL ISLIP, N.Y.–Sleepy’s will pay $2.1 million in cash to acquire certain assets of 1800mattress.com, the multichannel retailer that filed an involuntary Chapter 7 bankruptcy petition at U.S. Bankruptcy Court here last week.
According to a filing of the asset purchase agreement made yesterday, the deal is scheduled to close on or before April 30, with the actual date depending on certain conditions and procedures being carried out. After the closing, Napoleon Barragan, founder, chairman and chief executive officer of 1800mattress, will stay on as vice president responsible for developing e-commerce marketing initiatives, according to an exhibit filed with the asset purchase agreement.
1800mattress made its involuntary filing in bankruptcy court after Sealy and Blue Bell Mattress, a licensee of Comfort Solutions, filed a petition in this court to force 1800mattress into liquidation.
Before this filing, the multichannel mattress retailer had announced that it had signed a letter of intent to be acquired by an investor group headed by Ken Mazda, vice president of business development. A separate court filing regarding the Sleepy’s purchase earlier this week said discussions on a possible sale to other potential purchasers had been broken off. A brief statement in one of the exhibits accompanying the asset purchase agreement said Mazda has “threatened to bring litigation in respect of an alleged breach” of the letter of intent.