After weeks of rumors regarding its future, Mattress Firm filed for Chapter 11 bankruptcy protection and will begin to close roughly 200 stores in the next few days. Presently operating approximately 3,500 stores, Mattress Firm will shutter up to 700 stores in certain markets leading up to the holiday season, according to CEO and Executive Chairman Steve Stagner.
Mattress Firm expects to complete a prepackaged restructuring within 45 to 60 days, and intends to use the additional liquidity from these actions to improve its product offering, open new stores in new markets and strategically expand in existing markets, Stagner said.
The bankruptcy filing lists more than $1 billion each in both assets and liabilities, and includes units of well-known brand names such as Sleepy’s and 1800mattress.com.
The mattress retailer has secured approximately $250 million in debtor-in-possession financing to support its operations under bankruptcy. It also has secured $525 million in financing to help its emergence from bankruptcy and to continue operations.
Trouble has been brewing for Mattress Firm for quite some time due to operating an excessive number of stores, many often located within close proximity to each other. The retailer also has…