A recent bankruptcy filing reveals plans for Mattress Firm closing up to 700 of its stores.
According to the company, it is choosing to go through with the Mattress Firm closing plans in an effort to save money. It notes that the areas where stores will be closing are those with other Mattress Firm stores nearby.
The Mattress Firm closing plan will start over the next few days as the company closes down
roughly 200 stores. It is seeking approval from the U.S. Bankruptcy Court in Delaware to reject leases at its 700 locations it wants to close. It will wait for this decision before closing further stores.
The company isn’t working on its own to complete the Mattress Firm closing plans. Instead, it is getting help from A&G Realty Partners. The company is advising any lease holders with questions about the process to get into contact with the real estate company.
While the Mattress Firm closing plan does include the company going into Chapter 11 bankruptcy protection, it already has plans for its restructuring. This includes having $525 million of senior secured credit facilities.
Mattress Firm says that the senior secured credit facilities will allow the company to exit bankruptcy and support its business for some time afterwards. It also points out that it is expecting to emerge from bankruptcy in the next 45 days to 60 days.
Mattress Firm also says that its customers have nothing to worry about with the bankruptcy. It is still planning to honor warranties and complete orders. The company is assuring suppliers that the restructuring plan won’t interfere with its relationship with them, either.
As of this writing, William White did not hold a position in any of the aforementioned securities.
