July 14, 2009 : Chelsea's Spring Air is back in business

>> WHEN WE CONTINUE, ONE DOOR

CLOSES AND ANOTHER OPENS.

TURNS OUT THE MATTRESS

INDUSTRY IS ABOUT AS

COMPLICATED AS THE CAR

INDUSTRY, WITH MULTIPLE OWNERS

OF MULTIPLE BRANDS.

BUT DESPITE THE COMPLEXITIES,

WHEN ONE LOCAL MATTRESS

COMPANY WENT BELLY UP IT WAS A

FORMER EMPLOYEE WHO STEPPED

FORWARD TO SAVE THE DAY.

THIS FACTORY IN CHELSEA HAS

BEEN MAKING MATTRESSES FOR

THREE DECADES.

MOST RECENTLY FOR THE SPRING

AIR MATTRESS COMPANY.

BUT IN MAY THE 77,000 SQUARE

FOOT OPERATION WAS SHUTTERED,

AS SPRING AIR ABRUPTLY WENT

OUT OF BUSINESS.

>> WE ARRIVED AT THE PLAN AND

THERE WAS A GENTLEMAN HANDING

OUT LETTERS TO THE EMPLOYEES

SAYING THE PLANT WAS NOW

CLOSED.

>> NO, IT COULDN'T BE.

NO, IT'S FOR REAL.

>> THE UNEXPECTED CLOSURE

MEANT THE LOSS OF 80 JOBS.

>> THE ONLY THING I COULD

THINK IS I GOTTA GO HOME AND

GIVE THE NEWS TO MY FAMILY.

>> WHEN YOU GET HERE AND SEE

ALL THESE PEOPLE OUT OF WORK,

YOU HAVE THAT EMPATHY FOR THEM,

REGARDLESS OF THE FACT THAT WE

MAY NOT HAVE A JOB IN A COUPLE

DAYS.

>> BUT THREE DAYS LATER THERE

WAS A MODERN DAY BUSINESS

MIRACLE. THE CHELSEA FACTORY

WAS UP AND RUNNING.

EDDIE BATES, A LOCAL

ENTREPRENEUR WHO OWNED IT FOR

25 YEARS, BOUGHT THE SPRING

AIR COMPANY BACK, PUTTING

NEARLY EVERYONE BACK TO WORK.

>> SO MANY PEOPLE EMPLOYED.

I WAS HAPPY THAT WE COULD COME

BACK.

>> EDDIE BATES IS HERE.

WELCOME.

SO HOW DID YOU DO THIS?

YOU SOLD THE BUSINESS FOR 18.5

MILLION TWO YEARS AGO.

WHY BUY IT BACK?

>> IT WAS EMOTIONAL, I GUESS.

WHEN I ORIGINALLY SOLD IT IT

WAS TO BE A BETTER PLACE.

AND AS THE TWO YEARS WENT

ALONG I SEEN THAT WHAT WAS

HAPPENING, BUT I COULDN'T DO

ANYTHING ABOUT IT.

AND THEN WHEN THEY CLOSED, I

JUST SAID I HAVE TO BUY THE

PLACE BACK.

>> I KNOW, BUT THIS IS CRAZY,

AS YOU SAID YOURSELF.

>> IT IS.

>> THEY'VE GOT UNSECURED

CREDITORS, 12.3 MILLION.

YOU'RE ONE OF THE CREDITORS,

THEY OWE YOU A MILLION AND A

HALF DOLLARS.

>> RIGHT.

>> HOW ARE YOU GOING TO GET

THE MONEY BACK OUT?

>> RIGHT.

I DIDN'T THINK OF IT.

I JUST THOUGHT THAT THIS IS

WHAT I WANTED TO DO.

I SEEN --

IT WAS EMOTIONAL.

AND THEN FROM THERE, IT JUST

KEPT GOING.

I HAD PHONE CALLS COMING IN

EVERY DAY FROM OTHER

ENTREPRENEURS, ALL OVER THE

COUNTRY.

AND SAYS EDDIE, HOW CAN WE GET

INVOLVE WITH THE SPRING AIR

BRAND.

BY THE TIME I GOT FINISHED,

THIS WEEK WE GOT 13 FACTORYS

IN THE COUNTRY UP AND RUNNING

NOW.

>> SO SOME OF THE ONES THAT

WERE SHUT DONE AT THE SAME

TIME ARE NOW BACK UP?

>> RIGHT, 13 OF US.

AND I PUT UP A CORPORATE

OFFICE IN CHELSEA, CALLED

SPRING AIR INTERNATIONAL AND

WEE LICENSE ALL OVER THE

COUNTRY NOW.

>> THIS GETS FAIRLY

COMPLICATED, BECAUSE IN

ADDITION TO THIS, A LOT OF

THESE FACTORIES WERE CLOSED

AND IN VIOLATION OF THE 60 DAY

NOTICE RULE.

SO THERE WERE A LOT OF

LAWSUITS THAT HAVE SPRUNG UP

BECAUSE THEY DIDN'T GIVE THE

WORKERS 60 DAYS NOTICE THAT

THEY WERE LOSING THEIR JOBS.

ARE YOU GOING TO BE PART OF

THAT AS WELL?

>> NO.

NO, I BOUGHT JUST THE ASSETS

OF THE COMPANY.

>> AND IT SAYS THE ASSETS ARE

ONLY WORTH $26,000.

IS THAT POSSIBLE?

>> I DON'T KNOW WHAT YOU'RE

READING.

>> WE WERE READING SOMETHING

--

>> THE ASSETS THAT ARE LEFT

OVER, THE SECURED CREDITOR IS

THE ONE THAT I BOUGHT THE

BRAND FROM.

AND MOST OF THE ASSETS --

>> THEY SAID THEY ONLY HAD

$26,000 ON HAND.

>> LESS.

THAT'S WHAT WAS LEFT AFTER

THEY SOLD THE ASSETS OFF.

TO A SECURED CREDITOR, SOLD

THE ASSETS OFF.

AND THAT'S WHERE I BOUGHT IT

FROM.

>> COUNTRY TO US WHY THERE ARE

SO MANY MATTRESS COMPANIES IN

TROUBLE.

1800 MATTRESS, MATTRESS

DISCOUNTERS, A LOT OF THESE

HAVE FILED FOR BANKRUPTCY

PROTECTION.

>> THOSE ARE RETAMERS YOU'RE

TALKING ABOUT.

WE'RE A MANUFACTURER.

AND IT IS AN OVERPRODUCED

INDUSTRY.

IT ALWAYS WAS.

AND --

>> EVEN THOUGH IT'S ONE OF

THOSE THINGS THAT'S RENEWABLE,

MUCH LIKE A CAR, YOU HAVE TO

HAVE, YOU HAVE TO HAVE A NEW

ONE, ESPECIALLY IF YOU BUY A

REALLY GOOD ONE YOU DON'T NEED

A NEW ONE AS OFTEN.

BUT YOU SEE ALL THOSE

ADVERTISEMENTS, THEY JUST

BARRAGE YOU WITH THAT.

DO YOU NEED ONE, THEN YOU

START THINKING YOU DO.

>> WE STARTED THIS AS ALL NEW,

AND WE'RE THE SPRING AIR BACK

SUPPORT COMPANY.

AND WE HAVE TO FIGURE THE GAME

THAT WE'RE PLAYING.

AND TODAY IT'S ALL ABOUT A

GAME.

WE FIT IN THE MATTRESS

BUSINESS, WE'RE THE VALUE

DRIVEN BRAND.

SO WE'RE ALL ABOUT VALUE.

QUALITY, VALUE.

AND IT'S FUNNY, THE BACK

SUPPORTERS, THAT COMPANY

STARTED IN 1926.

AND IT WAS FOR BEDRIDDEN

PATIENTS, THEY DEVELOPED THE

BACK SUPPORTER UNIT TO SUPPORT

BEDRIDDEN PATIENTS.

AND IT'S A COMPANY THAT'S 83

YEARS OLD.

AND NOBODY PROBABLY HEARD IN

NEW ENGLAND, BUT WE NEVER USED

IT.

JOHN F. KENNEDY HAD A BACK

PROBLEM, WE ALL KNOW ABOUT HIS

BACK PROBLEM.

AND HE SLEPT ON A BACK

SUPPORTER IN THE WHITE HOUSE.

WE WEREN'T EVEN ABLE TO SAY

THAT.

>> YOU WANT ABLE TO SAY THAT?

>> WHAT YOU TALK ABOUT WHAT

THE BRAND IS AND WHAT --

>> SO YOU THINK YOU SHOULD BE

ABLE TO TURN IT AROUND?

>> RIGHTS.

>> HAVE YOU BEEN ABLE TO MEET

PAYROLL?

IF IT'S AN OVERPRODUCED TRY,

HOW ARE YOU GOING TO MAKE THIS

ONE --

>> WE HAVE GOOD RETAILERS IN

NEW ENGLAND AND THEY'VE

SUPPORTED OUR FACTORY.

WHEN THEY HEARD THE NEWS THAT

THE FACTORY IS BACK AND I TOOK

IT BACK, THEY ALL JOINED AND

PUT THE PRODUCT BACK ON THE

FLOOR.

AND CHELSEA, KNOCK ON WOOD,

TODAY IT'S HOLDING ITS OWN.

THE OTHER PLANTS ARE ALL OPEN

AND UP AS WE SPEAK, AND THEIR

MARKET, THE FURNITURE MARKET

IS IN HAS VAGUE AS AND THAT

STARTS THE SEPTEMBER --

IN LAS VEGAS.

IN SEPTEMBER.

AND ALL THESE ARE

ENTREPRENEURS, WHEN YOU TALK

ABOUT NOT ONLY THE MATTRESS

COMPANY BUT THE ECONOMY IN

GENERAL, AND PEOPLE THAT HAVE

MONEY SIDING ON THE SOID LINES

TO GET OUT THERE, BUY, BUY

BUSINESSES, FIX THEM, WHETHER

IT'S THE LAND OF OPPORTUNITY,

WHETHER IT'S THE CANDLESTICK

MAKER OR DELICATESSEN OR WHAT

YOU HAVE KNOWLEDGE OF OF.

>> PEOPLE DON'T HAVE THE NERVE

TO DO IT.

>> I LEARNED MYSELF, I GOT A

LOT OUT OF THIS, NOT THE

BUSINESS, BUT EVEN THE PEOPLE

THAT I FELT THAT REALLY

APPRECIATED WHAT I DID.

BUT I GOT MORE OUT OF IT THAN

THEY DID.

BECAUSE I'VE BEEN DEAD IN THE

LAST FEW YEARS, WHEN I SOLD

THE BUSINESS I LOST SOMETHING

IN MYSELF.

WHAT DO YOU WANT TO CALL IT.

YOU KNOW, WHAT WAS I DOING, MY

LIFE WAS LIKE DEAD, IT WAS

JUST LIKE IT'S HARD TO EXPLAIN,

BUT I HAVE TO HAVE A PURPOSE

IN LIFE.

>> WELL, YOU'VE GOT IT NOW.

>> I LOST MY PURPOSE.

NOW I GOT MORE THAN I NEED.

>> NOW YOU'RE A HERO.

>> A HERO, NO.

I FEEL GOOD THAT MYSELF IT'S

LIKE I JUST FEEL YOUNGER BE.

>> THAT'S GREAT.

CONGRATULATIONS.

>> THANK YOU.

>> EDDIE BATES, THANKS FOR

COMING.

TOMORROW NIGHT, WHY SOME

SUMMER JOBS FOR KIDS ARE GOING

TO ADULTS, PLUS THE NEW

EDITION WITH ALL THE LATEST

BUZZ WORDS.