EX-99.2 3 ex99_2.htm SIMMONS ATLANTA PRESS RELEASE ex99_2.htm
SIMMONS CONSOLIDATES ATLANTA MANUFACTURING OPERATIONS
INTO EXISTING FACILITIES
--Company optimizes service structure; improves production efficiency in Southeast--

(ATLANTA – September 10, 2008) – Simmons Bedding Company announced today that it is transitioning its Atlanta manufacturing operations to the company’s facilities in Dallas, Texas; Waycross, Ga. and Charlotte, N.C. with an anticipated effective date of September 18. The move is part of an ongoing effort to optimize Simmons’ operations network in the southeastern United States and will create a more efficient production and delivery system without disrupting service to retailers in the region.
 
    “The decision to close our Atlanta manufacturing facility is a very difficult one for us because of its impact on loyal Simmons associates,” said Simmons Chairman and CEO Charlie Eitel. “Until recently, we believed our Atlanta facility would continue to be part of our manufacturing network; however, due to weaker than expected business conditions, we simply could not justify maintaining two manufacturing plants in the state of Georgia.”
 
    In 2004, Simmons opened a new, state-of-the-art manufacturing facility in Waycross, Ga., which has emerged as one of the top manufacturing plants in the Simmons network. Employing 211 associates, the facility offers excellent safety, quality and service, as well as lower manufacturing costs.
 
    This past April, Simmons reduced its Atlanta production to one shift and moved a portion of business to what is also a new, state-of-the-art manufacturing facility in Dallas. The balance of Atlanta’s production will shift to the Waycross and Charlotte plants on September 18.
 
    According to Kimberly Samon, Simmons’ executive vice president of human resources, the company decided to consolidate its southeast manufacturing operations because of reduced utilization. “Due to the current economic situation, our southeastern facilities have not been operating at full capacity,” said Samon. “Consolidating our manufacturing operations resolves that issue; however, we regret that it will negatively impact our Atlanta associates.  We have no further plans to close other facilities.”
 
    The Waycross, Dallas and Charlotte plants are three of Simmons’ leading manufacturing facilities: the Waycross plant has been nominated for the Georgia Manufacturer of the Year award each of the past two years and features a new 250,000 square foot building that showcases lean manufacturing; in April 2008, the Dallas plant moved its operations into a brand new facility that includes environmentally-friendly aspects like energy-efficient lighting and high-efficiency air compressors; and the Charlotte plant’s achievements include being selected for OSHA’s Safety and Health Achievement Recognition Program (SHARP) by the North Carolina Department of Labor’s Occupational Safety & Health Division and receiving the 2003 Tony Saliture Award for Operational Excellence, Simmons’ highest honor.
 
    The closure of the Atlanta facility will result in the layoffs of 91 associates and 12 administrative and management team members, whom Simmons is helping to transition through this difficult time. Nonunion employees will receive severance packages scaled according to tenure, subsidized health insurance for the length of the severance period, outplacement assistance and access to Simmons’ Employee Assistance Program, which includes job, financial and personal counseling.  Union employees will receive a severance package that is subject to bargaining with their union.
 
    For more information, visit www.simmons.com.

About Simmons Company
 
Atlanta-based Simmons Company, through its indirect subsidiary Simmons Bedding Company, is one of the world's largest mattress manufacturers, manufacturing and marketing a broad range of products including Beautyrest®, Beautyrest Black®, Beautyrest Studio™, ComforPedic by Simmons™, Natural Care®, Beautyrest Beginnings™ and Deep Sleep®. Simmons Bedding Company operates 20 conventional bedding manufacturing facilities and two juvenile bedding manufacturing facilities across the United States, Canada and Puerto Rico. Simmons also serves as a key supplier of beds to many of the world’s leading hotel groups and resort properties. Simmons is committed to developing superior mattresses and promoting a higher quality sleep for consumers around the world. For more information, visit the Company’s website at www.simmons.com .
 
 
“Safe Harbor” Statement under Private Securities Litigation Reform Act of 1995:
 
 
This press release includes forward-looking statements that reflect our current views about future events and financial performance. Words such as “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts” and variations of such words or similar expressions that predict or indicate future events, results or trends, or that do not relate to historical matters, identify forward-looking statements. The forward-looking statements in this press release speak only as of the date of this report. These forward-looking statements are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations. These factors include, but are not limited to: (i) general economic and industry conditions; (ii) competitive pricing pressures in the bedding industry; (iii) legal and regulatory requirements; (iv) the success of our new products and the future costs to roll out such products; (v) our relationships with and viability of our major suppliers; (vi) fluctuations in our costs of raw materials and energy prices; (vii) our relationship with and viability of significant customers and licensees; (viii) our ability to increase prices on our products and the effect of these price increases on our unit sales; (ix) an increase in our return rates and warranty claims; (x) our labor relations; (xi) departure of our key personnel; (xii) encroachments on our intellectual property; (xiii) our product liability claims; (xiv) our level of indebtedness; (xv) interest rate risks; (xvi) foreign currency exchange rate risks; (xvii) compliance with covenants in our debt agreements; (xviii) our future acquisitions; (xix) our ability to achieve the expected benefits from any personnel realignments; and (xx) other risks and factors identified from time to time in our reports filed with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements, either to reflect new developments or for any other reason.