Mattress Firm files bankruptcy, will close 700 stores

Mattress Firm files for bankruptcy

Mattress Firm files for bankruptcy

Court documents show that the 32-year-old Mattress Firm owes millions of dollars in debt to mattress manufacturers including $65.7 million to Simmons Bedding Company and $25.5 million to Serta.

The company has more than 3,200 stores and more than 9,800 employees in the United States and in recent years had aggressively expanded its retail footprint.

The company's two Garden City stores are almost across the street from each other, just south of the corner of State and Glenwood streets.

The chain says some stores are too close to each other, while others are underperforming.

ME has seven Mattress Firm stores, according to its website.

"Mattress Firm is some sort of giant money laundering scheme. Decisions about additional store closings will be made in the next few weeks", it added.

The company's statement said it will close stores in markets where it has too many locations in close proximity to each other.

Redditors argued that the chain had too many stores in the USA given that mattresses are a product that is typically bought every seven to 10 years.

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Altogether, Mattress Firm operates 16 stores in Idaho, including Boise, Meridian, Garden City, Nampa, Twin Falls, Pocatello, Ammon, Coeur d'Alene and Lewiston.

South Africa-based Steinhoff acquired Mattress Firm in 2016.

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.

Mattress Firm's parent company has been dealing with its own problems as its stock price has drastically tumbled after it reported accounting irregularities that are being investigated.

Stores could help Casper stand out in a crowded mattress market.

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

"The past few years have been tough for Mattress Firm".

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