A slimmed-down Mattress Firm is closer to exiting bankruptcy.
The retailer announced Friday that its reorganization plan has won approval from the U.S. Bankruptcy Court in Delaware. Mattress Firm expects to complete its restructuring and emerge from Chapter 11 in the coming days. As previously announced, Mattress Firm, which filed for Chapter 11 at the beginning of October, is closing about 700 stores, leaving it with some 2,500 locations.
“This short process has enabled Mattress Firm to strengthen our balance sheet and optimize our store footprint, giving us the flexibility to continue with our mission, which is to offer our customers the best beds at compelling values,” said said Steve Stagner, executive chairman, president and CEO. “Furthermore, our significantly improved financial and operating position will enable us to strategically expand our business in new as well as existing markets, while continuing to focus on enhancing our omni-channel capabilities and product offerings."
A&G Realty Partners is assisting the company with its store closing and lease restructuring program. Sidley Austin LLP is serving as the Company's legal counsel, AlixPartners LLP is serving as its financial advisor, and Guggenheim Securities, LLC is serving as its restructuring advisor.
Mattress Firm was acquired by South African retail conglomerate Steinhoff International Holdings for $3.8 billion in 2016. The company, which owns more than 40 retail brands, is involved in an accounting scandal that has damaged its stock price.