Practice Area:Bankruptcy / Chapter 11
Outcome:Chapter 11 Plan Confirmed
Description:Weintraub & Selth, APC (â€œWeintraub & Selthâ€), a West Los Angeles boutique bankruptcy firm, recently served as general bankruptcy counsel to Banner Bedding, Inc., a California corporation doing business as Banner Mattresses, (â€œBanner Beddingâ€). Less than one year from filing the chapter 11 petition, Banner was able to completely restructure its balance sheet, shedding itself of burdensome and unprofitable stores, restructuring all of its quality leases and eliminating millions of dollars of debt. The Plan of Reorganization proposed by Weintraub & Selth and accepted by Bannerâ€™s creditors proposes to pay creditors three percent (3%) of approved claims over a period of three (3) years with the possibility of an additional one percent (1%) if Banner makes all of its numbers. â€œOur client, the judge and Creditorsâ€™ Committee were thrilled to have this case emerge from bankruptcy so quickly!â€ says Daniel Weintraub, managing shareholder of Weintraub & Selth and one of Californiaâ€™s Super Lawyers of 2009. Banner Bedding, a mattress company founded by the Scorzeill family, commenced doing business in 1926 in Ohio. In 1964, the company moved to California and has been managed by three generations of the Scorzeill family to date. The company, which originally manufactured mattresses for the wholesale market, grew to encompass 37 retail stores to compliment its factory and production facility. The general economic downturn following Bannerâ€™s rapid expansion created a need to revisit the companyâ€™s operational methodology. On June 9, 2008, Banner filed its petition for relief under Chapter 11 of the Bankruptcy Code, choosing Weintraub & Selth to lead it through chapter 11's unchartered waters. While writers and reporters often cite the low success rates for Chapter 11 debtors across the country, Wentraub & Selth, has successfully reorganized numerous middle market businesses. Bannerâ€™s completion of the restructuring process in less than one year is a virtually unheard of accomplishment for a company of nearly forty stores and three hundred fifty employees. Banner is currently noted to be one of the largest operating companies to emerge from a Chapter 11 bankruptcy case in the Central District of California this year. In its success, Banner was able to save many employees from joining the jobless, maintain tenancies at several stores which otherwise might be dark and provide a distribution from future operations to its creditors. The Chapter 11 process offers the opportunity to close poorly performing stores, restructure equipment, office and store leases, eliminate debt and restructure business operations for challenged organizations. Today, under the management of Geno and Lisa Scorziell, Banner has 14 locations in Southern California and continues its commitment to offer its customers mattresses handcrafted to the highest quality. Weintraub & Selth, APC, combines the experience, sophistication and thoroughness of a large law firm with the cost-effectiveness of a small firm to get the best results for its clients. For more information, please visit www.wsrlaw.net.