Mattress Firm files for Chapter 11 bankruptcy protection

Mattress Firm files for bankruptcy

Between 2012 and 2016, Mattress Firm acquired several companies - Mattress Giant, Sleep Train, and Sleepy's.

Mattress Firm and its subsidiaries today filed voluntary Chapter 11 restructuring cases in U.S. Bankruptcy Court in DE to implement a prepackaged plan of reorganization.

The company could eventually close 700 of its 3,000 locations.

Among the stores targeted for closing in its location at 610 S.E. Greenville Blvd., one of four locations in Greenville.

Mattress Firm will need the court's approval to reject the leases of the stores it hopes to close.

It reported $2.5 billion revenue in 2015, making it the largest independent mattress retailer in the country. Those stores are located "in certain markets where we have too many locations in close proximity to each other", CEO Steve Stagner said in a statement.

Mattress Firm had planned to open a store there, but later changed its mind after construction was delayed to comply with environmental assessments. Two other stores will be closed in San Marcos and Murrieta.

Mattress Firm operates 20 locations in Northeast Florida, according to its website.

The retailer, which said it will continue to serve customers as usual at stores and online during the process, has also received $775 million to fund ongoing operations and repay debt and costs associated with the restructuring.

Steinhoff bought Mattress Firm for $3.8 billion two years ago, but the chain expanded too aggressively, suffered from ineffective marketing and has been embroiled in a dispute with suppliers, Steinhoff said.

"Considering the group's current position, we believe the Mattress Firm recapitalization is the best way to support and accelerate the turnaround plan".

Mattress Firm's restructuring comes as its parent company, Steinhoff International, fights for survival after revealing $9million of hidden debt a year ago.

In Boise, Mattress Firm has four stores near the Boise Towne Square mall.



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