Houston-based sleep shop chain Mattress Firm emerged from Chapter 11 bankruptcy Nov. 11, 2018, having filed voluntarily on Oct. 5 at the U.S. Bankruptcy Court in Delaware.
At the time of filing, the company had said it hoped to exit bankruptcy within 45 to 60 days. It planned to implement a prepackaged plan of reorganization that would allow it to gain access to new financing, remain in full operation, exit as many as 700 store leases at underperforming locations, and pay its suppliers and contractors in full.
According to a news release, the retailer emerged with an optimized balance sheet and slimmed down store footprint of about 2,600 locations across the United States — or close to 900 fewer stores than it operated prior to filing. The company obtained $525 million of committed exit financing to support operations and future growth initiatives, including a $125 million revolving credit facility that will be undrawn at closing.
“This is an exciting day for Mattress Firm as we emerge a stronger and more competitive company,” said Steve Stagner, executive chair, president and chief executive officer. “With an optimized store footprint, stronger balance sheet and signifi- cant liquidity, we will be able to more efficiently focus on our strength – delivering the best beds at the best value to millions of customers across the country. We knew that our unprecedented growth had led to duplicative store locations in many of our markets. Now, having completed our operational and financial restructuring, we have the right store locations to not only better serve our customers, but also to fuel future growth. Going forward, we will be intensely focused on enhancing our product offering, driving disciplined and results-oriented operations and building an integrated and educational shopping experience.
“Our successful emergence from Chapter 11 is a testament to the hard work of our associates. It was their tremendous loyalty, effort and dedication that allowed us to efficiently complete this restructuring process in just 48 days. I am honored to lead this incredible team forward as we continue to provide customers with unmatched value and service.”
In 2016, Mattress Firm was acquired by Steinhoff International Holdings NV, based in Johannesburg, for $3.8 billion. That conglomerate is struggling for survival in the midst of a massive accounting scandal.