RANDOLPH, N.J. — A U.S. bankruptcy court judge has approved the sale of most of Rockaway Bedding’s assets to Sleepy’s and Hudson Capital Partners.

Adam Blank, executive vice president and general counsel for 458-store Sleepy’s, confirmed today that the judge approved a $12 million deal to buy nearly all of Rockaway’s assets, including 134 store leases and a main warehouse, after no other bidders emerged. The price is adjustable based on Rockaway’s inventory levels, he said.


According to earlier court documents, Sleepy’s and Hudson bid “up to $12 million” for the assets — less than the $15 million to $20 million previously reported. A list of stores in the asset purchase agreement also had included a plan to liquidate about 65 stores, primarily in New Jersey and New York.

Blank declined to comment on Sleepy’s plans for the Rockaway stores.

William Katchen, an attorney representing Rockaway, told the Newark, N.J. Star-Ledger that Rockaway’s remaining stores not covered by the deal likely will be closed. Katchen could not be reached immediately for comment.

Privately held Sleepy’s ranks No. 18 on Furniture/Today’s survey of Top 100 U.S. furniture stores with estimated sales last year of $455 million at 425 stores throughout the Northeast. Sales were up more than 15% from the previous year.

Randolph, N.J.-based Rockaway, another Top 100 company, filed for Chapter 11 bankruptcy protection April 9, owing its top nine industry creditors more than $8.4 million. It said at the time it intended to reorganize by culling its weakest stores.

According to the Star-Ledger, the bankruptcy court judge and an attorney representing unsecured creditors said those creditors “will receive little or nothing in repayment from the Sleepy’s sale.”

Furniture/Today estimated Rockaway did about $143 million in sales at 185 stores last year in New York, New Jersey, Pennsylvania, Connecticut, Delaware, Maryland and Virginia.