Mattress Firm, with 7 ME locations, files for bankruptcy

Mattress Firm files for bankruptcy

A nationwide mattress company with South Dakota ties is filing for bankruptcy.

Mattress chain Mattress Firm filed for Chapter 11 today with plans to close up to 21 percent of its 3,300 stores across the country, the company announced.

The company has more than 3,000 stores in the USA and in recent years had been aggressively expanding as it purchased competitors. The company now has more than 3,300 locations in the United States, including four in Sioux Falls. Mattress Firm hopes to exit bankruptcy in about two months.

"Mattress Firm is some sort of giant money laundering scheme". The four-year-old company wants to gain exposure with shoppers who prefer trying out a mattress at a store first - and increase impulse buys that can only come from browsing physical locations.

Decisions about additional store closures could be made in the next few weeks.

The bankruptcy filing comes as parent company South African-based Steinhoff global Holdings has seen declining revenues and sales, amid increased competition from online startups like Casper.

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.

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 U.S. market and expand its global reach.

Founded in 1986, Mattress Firm bought competitor Sleepy's for $780 million in 2015.

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

Last year, Mattress Firm lost a contract with Tempur Sealy International and no longer sells TempurPedic or Sealy beds in its stores.

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