1-800-Mattress Files Ch. 11 To Avoid Liquidation

Law360, New York (March 24, 2009, 12:00 AM EDT) -- Less than a week after three creditors petitioned to liquidate Dial-A-Mattress International Ltd., the mattress retailer has responded by filing for Chapter 11 bankruptcy protection and securing a contract of sale from fellow mattress merchant Sleepy's.

In a voluntary petition filed Monday in the U.S. Bankruptcy Court for the Eastern District of New York, Dial-A-Mattress and its primary retailer, 1-800-Mattress Corp., said they had less than $50,000 in assets and liabilities and owed at least $12.6 million to their creditors, according to court documents.

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