Dormia files bankruptcy, two local stores to stay open
Published: Thu, Jun. 19, 2008 12:27PM
Modified Thu, Jun. 19, 2008 12:29PM
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closeUpscale mattress retailer Dormia filed for Chapter 11 bankruptcy Wednesday, but its two Triangle stores at Crabtree Valley Mall and Cary Towne Center will remain open for now.
The company, which is a subsidiary of Maryland-based Classic Sleep Products, has 20 stores in nine states.
"While some of the stores performed well over the years, we were never able to open enough locations to leverage the advertising and operational support in multiple markets," said president and CEO Mike Zippelli in a statement.
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In 2007, Dormia sales were about $18.7 million, according to the bankruptcy papers filed in U.S. Bankruptcy Court this week. The filing did not affect Classic Sleep Products' wholesale operations.
Despite having requested and received permission from the court to hold going out of business sales, Dormia representative Stan Steinreich insisted that all 20 stores will remain open.
"Realistically, they believe that in anywhere from 30 to 90 days, the reorganization plan should be in place," he said. "There has been no determination to close any stores yet."
Representatives from both Crabtree Valley Mall and Cary Towne Center said they have not received any notice of pending closures for the stores.
Dormia opened its first area store in Cary in late 2005 and opened its Raleigh store the following year.
sue.stock@newsobserver.com or (919) 829-4649
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