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Mattress manufacturer files for Chapter 7 bankruptcy

A number of manufacturers in the Triad family have recently closed their doors, and as of Dec. 15, another has joined them. South Carolina business owners dealing in bedroom furniture may be aware of the Carolina Mattress Guild, a 23-year-old mattress manufacturer. The company filed for Chapter 7 bankruptcy at the end of last year, citing high levels of debt. 

It is unknown when the Carolina Mattress Guild ceased production, but it has been confirmed that, as of November, the company owed wages to some 77 workers. The co-owner of the company has declared that these wages, totalling $51,149, will likely not be paid out, as they are considered unsecure creditors. In the secured creditor camp, the company lists some $3 million in secured debt and another $2 million in unsecured debt. 

This is listed against roughly $1.7 million in assets, most of which is attributed to machinery. Company leadership could not point to a specific problematic area that may have contributed to the large debt load carried by Carolina Mattress. However, it should be noted that the couple that owns the company are also engaged in a Chapter 7 filing for their personal finances as well. 

The multiple Chapter 7 filings may be indicative of a more serious problem on the part of the couple that owns Carolina Mattress. Regardless, however, a bankruptcy filing can be extremely effective in mitigating the cost of debt, particularly when it grows past a certain level. South Carolina business owners are reminded that debt does not have to mean the end of their respective careers. 

Source: news-record.com, "Carolina Mattress Guild files for Chapter 7 bankruptcy", Richard Craver, Jan. 3, 2015

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