Mattress Firm files bankruptcy, to close 700 stores

08 October, 2018, 05:15 | Author: Brooke Harris
  • Mattress Firm filed for bankruptcy and is already beginning to close stores

The company and its subsidiaries filed for Chapter 11 restructuring in the U.S. Bankruptcy Court in DE with hopes of implementing a prepackaged reorganization plan. It plans to close as many as 700 stores as part of a prepackaged bankruptcy that it said could be completed in the next 45 to 60 days.

"The bankruptcy will not affect any stores in ME", a store manager at the one of the company's Portland area locations told the Bangor Daily News, requesting anonymity. Along with the 1414 R Street store, the first wave of stores to close will include locations in Fresno and Bakersfield.

"The process we have initiated today will allow us to strengthen our balance sheet and accelerate the optimization of our store portfolio", Steve Stagner, the president and CEO of Mattress Firm, said in a statement. "Decisions about additional store closings will be made in the next few weeks", it added.

Walmart also entered the fray earlier this year with its own online premium mattress brand, Allswell.

ME locations of Mattress Firm stores were not among the 209 listed for immediate closure in documents sent to the BDN by Mattress Firm representative Erica Martinez of marketing firm Jackson Spaulding.

The retailer has secured about $250 million in so-called "debtor-in-possession" financing to support its operations under bankruptcy.

Two Republican senators, two divergent paths on Kavanaugh
Ford said she was "terrified" by the process, but said she felt like it was her "civic duty" to come forward. Senator Manchin, the only Democrat to support Kavanaugh, made the announcement soon on the Senate floor.

"Mattress Firm has been facing significant operational challenges which management is addressing through its turnaround plan", Steinhoff's acting chief executive Danie van de Merwe said.

In 2016, Mattress Firm was acquired by South Africa-based retailer Steinhoff International Holdings for $3.8 billion.

At the time then-Steinhoff CEO Markus Jooste - who abruptly resigned in December 2017 amid a still-ongoing accounting scandal - said the acquisition would allow Steinhoff to enter the United States market and expand its global reach.

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

Sales fell 11.2 percent last yer to $3.29 billion, the company said in an investor presentation.

Recommended:



Popular

Vitamin D supplements do not improve bone health, major study finds
Vitamin D supplements aren't what they are cracked up to be when it comes to improving bone health and preventing breaks. Despite recommendations from governmental bodies around the world, vitamin D supplements do not benefit bone health.

Trump wins: Brett Kavanaugh confirmed to Supreme Court
Though the fight to confirm Trump's pick is now official over, the impact of Kavanaugh's confirmation will have a lasting effect. That's what they have become. "Very, very good", Mr Trump said. "Republicans are the party of law and order and justice".

State Police: 20 dead after crash in Schoharie
At the news conference, Fiore didn't comment on the limo's speed, or whether the limo occupants were wearing seat belts. He directed state agencies to provide "every resource necessary" to aid in New York's investigation.

Relations with U.S. remain intact: Saudi Crown Prince
The consulate said it was working with the Turkish government to "uncover the circumstances" of his disappearance. The crown prince insisted that the kingdom has always paid for armaments from the US.

Mark Lawrenson states his prediction for Liverpool FC v Man City
Liverpool and Manchester City can generally be relied upon to provide open, expansive tussles with goals aplenty. It's now about finding a way to make sure Rangers enforce their game on the opposition when they leave Ibrox.

Panthers S Reid will start against Giants
These are the key players for the Carolina Panthers to secure a win over the New York Giants and to keep pace in the NFC South. He has at least 100 all-purpose yards in all four of the Giants games and is second on the team in receptions with 27.

Sky Sports pundit Gary Neville slams three players after Man City draw
In the cases of Mohamed Salah , Roberto Firmino and Sadio Mane , however, recent performances suggests they may be feeling jaded. Virgil van Dijk admitted it was the correct call to award Manchester City a penalty in Sunday's Premier League clash at Anfield.

Rescue teams providing relief following natural disaster in Haiti
The Haitian civil protection agency said there was no tsunami warning following the quake , which was felt across the country. The earthquake's epicentre was about 19 km northwest of the city of Port-de-Paix, the United States Geological Survey said .

Supreme Court moves right, but how far, how fast?
Several polls show that Republican enthusiasm about voting, which had lagged behind, jumped after the Kavanaugh hearing last week. Susan Collins , R-Maine, in the speech where she announced her support for Kavanaugh, tipping the Senate balance in his favor.

Twitter reactions to Man United's draw against Valencia
When you see a player struggling like that it's just sad, you know that player has been a great player over the last few years. Alexis Sanchez has been a warrior of a player to watch over the last few years and you don't become a bad player overnight.