A 175-employee Shelton manufacturer of latex foam used in the likes of mattresses and pillows has taken a major step back from bankruptcy and a fire and is no longer for sale.
Latex Foam International Holdings Inc. on River Road, which bills itself as “the world”™s largest Talalay Latex component producer and manufacturer of the Pure Latex BLISS bedding line,” said it has reached a consensual agreement with the committee representing its unsecured creditors and has filed a joint reorganization plan in its bankruptcy case.
The company said it will now focus its efforts on executing its growth plan. Management said it has ceased the process of selling the company.
“This plan is the culmination of several months of reorganization and restructuring of our business, including the rebuilding of our primary production facility that had been severely damaged by fire,” Latex International President and CEO David Fisher said in a press release.
The company filed for Chapter 11 protection in U.S. Bankruptcy Court for the District of Connecticut on May 30. It suffered a fire in its principal dryer June 26.
Company creditors include several multinational corporations, it said in a press release.
“We are grateful to our loyal customers, vendors and employees whose support has been overwhelming during this process,” Fisher said. “We said at the time of our filing that this was a strategic decision to restructure a healthy business that was burdened by financial debt obligations from agreements put in place years ago. Relieving ourselves of those burdens puts our company in a position where it can finance itself from operations.
“The restructuring and post-fire rebuild of our state-of-the-art equipment has allowed us to reduce lead times, enhance customer service, and improve our first quality to 99 percent. This, coupled with over 99 percent on-time delivery, truly does enhance our customers’ experience.”
Latex International products are made with the Talalay and Dunlop manufacturing processes, according to the company, which cites mattress cores, pillows and mattress toppers among its products.
