Published: Mon, October 08, 2018
Money | By Ralph Mccoy

Mattress Firm to close up to 700 stores amid bankruptcy filing

Mattress Firm to close up to 700 stores amid bankruptcy filing

The Houston-based company said it would close up to 700 stores nationwide leading up to the holidays as part of filing for voluntary Chapter 11 protection, according to a news release on its website.

The retailer has been criticized for having too many stores in the United States.

CEO Steve Stagner said in a statement that the mattress retailer would be closing as many as 700 stores in markets where it has too many locations. One visible example: the two Mattress Firm stores across from each other at 3003 Knox and 3015 Knox just off N. Central Expressway in Dallas.

"Mattress Firm is some sort of giant money laundering scheme".

As a result of the store closures and other operational changes, Mattress Firm's corporate earnings before interest, tax, depreciation and amortization (EBITDA) are expected to be $200 million by the company's 2020 financial year, Steinhoff said.

Mattress Firm had planned to open a store there, but later changed its mind after construction was delayed to comply with environmental assessments.

Saraki Congratulates Atiku, Lauds PDP, Members for Sucessful Convention
It emerged from recession early previous year but growth remains sluggish and inflation above the central bank's single-digit target range.

Melania Trump Admits She Doesn't Agree With All Of Donald's Tweets
Image copyright Reuters Image caption The US First Lady's decision to wear a pith helmet on safari in Kenya has drawn criticism. The US first lady tour to Africa has been part of her BE BEST initiative which focuses on improving the lives of children.

Lewis Hamilton on the brink of F1 championship after Suzuka win
But behind him, there was action aplenty, much of it focused on Vettel. "Even the most experienced drivers make mistakes". The German went for a gung-ho lunge on Verstappen as he slowed down from 190mph at the left-handed Spoon corner.

In Southwest Virginia, Mattress Firm operates seven locations.

A store at 16375 N. Merchant Way in Nampa is listed among those being closed.

Additionally, the company said, all deliveries will be made on schedule.

The company is also facing stiff competition from "mattress in a box" online sellers like Caspar as well as furniture retailers that have refused to bow out of the profitable business.

In conjunction with its prepackaged restructuring plan, Mattress Firm has secured about $250 million in debtor-in-possession financing, which will be available to support its ongoing operations during the Chapter 11 proceedings subject to Court approval.

Steinhoff International Holdings bought Mattress Firm for $2.4 billion in August 2016. Debt already on Mattress Firms books raised the deal's value to about $3.8 billion.

Like this: