TSI in IMS Chapter 11 Bankruptcy

Cleary Gottlieb represented Tempur Sealy International Inc. and its affiliates (TSI) in connection with the Chapter 11 bankruptcy case of one of its regional bedding retailers, Innovative Mattress Solutions LLC (IMS).

IMS operated nearly 150 mattress and bedding retail locations and several distribution centers in West Virginia, Ohio, Kentucky, Indiana, Tennessee, Alabama, and Virginia. Cleary assisted TSI—the largest pre-petition supplier to IMS and the holder of the largest secured claim in the case—in providing DIP financing to IMS to fund a sale process and in the acquisition of substantially all of IMS’s business assets in a bankruptcy sale conducted under Section 363 of the Bankruptcy Code. The sale was successfully closed less than three months after the commencement of the bankruptcy case.