In-Court Restructuring & Sale of Bedding Products Manufacturer


Situation Overview

Hollander Sleep Products, LLC (“Hollander”) was a private equity-owned U.S. manufacturer of pillows, comforters, mattress pads, and other bedding products. Hollander was the largest producer of pillows in the U.S. selling to large retailers, clubs, specialty stores, hospitality, and online retailers. In recent years, the Company experienced increased raw material and operating costs, severe service problems caused by the relocation of two major manufacturing plants, and increased competitive pressures. These factors, along with increased debt levels stemming from a 2017 acquisition, led to a dramatic decline in operating performance and extreme liquidity pressure, ultimately leading the Company to file for bankruptcy in May 2019.

Due to its deep expertise with complex business restructurings and operational turnarounds in the consumer products industry, Carl Marks Advisors (CMA) was retained by the Hollander Board of Directors in April 2019 to serve as executive management (CEO, CFO, and VP of Manufacturing). The assignment was to develop a comprehensive business restructuring and profit improvement plan. Subsequently, due to the extreme liquidity constraints and excessive debt levels, the assignment was expanded in order to help lead the Company through a Chapter 11 bankruptcy restructuring and eventual §363 sale process.

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