I
posted this on LiveJournal linguaphiles nearly 12 years ago, so I say it's time to repost it here:
Once upon a time, there were two small businesses, one making garments, and the other bedroom furniture. They prospered in relative obscurity for a while, growing slowly over the years, until an economic downturn caught them both when they were overextended. Faced with serious trouble, they decided in a last-ditch attempt to band together, hoping that the combined company would survive what they couldn't weather on their own.
But because they weren't well-known and supplied different products, even people familiar with the trades would likely not know both by their names. This is likely why the reports of their plans didn't refer to them by their names, instead calling it the cot-coat merger.