Published: Mon, October 08, 2018
Business | By Eloise Houston

Nation's largest mattress retailer files for bankruptcy

Nation's largest mattress retailer 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.

Amid declining sales, in part stemming from the success of online mattress retailers, Mattress Firm has filed for Chapter 11 bankruptcy protection.

The retailer will begin to close roughly 200 stores in the next few days.

Steinhoff said Mattress Firm had recently suffered from ineffective brand marketing and an insufficient presence in the high-end market segment.

While two St. Louis-area Mattress Firm stores will close in the coming days amid the company's financial troubles, the clearance store in Fairview Heights will remain open.

Trouble has been brewing for Mattress Firm for quite some time due to operating an excessive number of stores, many often located within close proximity to each other.

Online reviews have replaced going to a store to lie down on a mattress. The company declined to make Stagner available for an interview.

"Traditional mattress retailers have been alienating customers for decades and are now buckling under pressure", Philip Krim, the CEO and co-founder of Casper, said in a statement.

The company said in the release it will continue to operate through the bankruptcy after receiving commitments for debtor-in-possession financing of $250 million and commitments for $525 million of senior, secured credit facilities.

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 United States market and expand its global reach.

"Considering the group's current position, we believe the Mattress Firm recapitalization is the best way to support and accelerate the turnaround plan".

In Boise, Mattress Firm has four stores near the Boise Towne Square mall.

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