Mattress Firm bankruptcy leading to one Greenville closure

Daniel Fowler
October 8, 2018

A proliferation of online mattress companies in the past few years, such as Casper, Leesa and Nectar, took market share as Mattress Firm operated half a dozen brands often at the same intersection.

Houston-based retail chain Mattress Firm has filed for bankruptcy and plans to close up to 700 stores across the country as part of a restructuring program.

More than 200 stores will close within days.

The company's two Garden City stores are almost across the street from each other, just south of the corner of State and Glenwood streets.

"We just opened a location in Auburn, and will open two more stores in the next six months In Ellsworth and in Scarborough", he added.

Steve Stagner, CEO of Mattress Firm, said, "The process we have initiated today will allow us to strengthen our balance sheet and accelerate the optimization of our store portfolio".

According to court documents, the nation's largest mattress retailer has more than $1 billion in liabilities and has more than 50,000 creditors.

The first 200 stores are expected to close their doors for good in the upcoming days.

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Redditors argued that the chain had too many stores in the USA given that mattresses are a product that is typically bought every seven to 10 years. "As a result, many Mattress Firm stores are in direct competition with other Mattress Firm stores, resulting in disappointing sales".

The company said it will take steps to ensure that deliveries will be made as scheduled and without interruption.

It has secured about $250 million in so-called debtor-in-possession financing to support its operations under bankruptcy.

Mattress Firm said it will not conduct any liquidation sales.

Its parent company, Steinhoff International, is dealing with major problems including accounting irregularities, forcing its CEO to resign in December 2017.

The scandal wiped more than 90 percent off Steinhoff's market value and brought the company under intense regulatory scrutiny.

Photo of Mattress Firm in downtown Silver Spring by Mike Diegel.

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