Mattress Firm declares bankruptcy, but the Fairview store will stay open

Casper founders wanted to modernize mattress shopping

Mattress Firm declares bankruptcy, but the Fairview store will stay open

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.

Mattress Firm, Inc., the nation's largest mattress retailer, is filing for bankruptcy protection and plans to close up to 700 stores around the country.

More than 200 stores will close within days. The company now has more than 3,300 locations in the United States, including four in Sioux Falls. It has six locations in Summit County, including a store in Springfield Township.

According to the press release, the company hopes to perform the necessary reorganization and exit bankruptcy in about two months.

The company is saddled with more than $1 billion in liabilities.

Steinhoff bought Mattress Firm in August 2016 for R33bn.

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.

Krim estimated that about 10 to 12 percent of mattress sales are online.

Two stores are less than a mile apart on Town Center Parkway. It said deliveries will continue to be made as scheduled and that it intends to continue honoring warranties and guarantees.

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 company's difficulties include an accounting scandal at its parent company, Steinhoff International, and losing a large contract with Tempur Sealy International past year.

Steinhoff CEO Danie van der Merwe said: "Mattress Firm has been facing significant operational challenges which management isaddressing through its turnaround plan".

In Boise, Mattress Firm has four stores near the Boise Towne Square mall. In a court filing, the company acknowledged "several well-intentioned, but ill-advised, marketing and sales promotions". Considering the Group's current position, we believe the Mattress Firm recapitalisation is the best way to support and accelerate the turnaround plan, so as to ensure a future for Mattress Firm and its employees and unlock value for shareholders over time.

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