Mattress Firm, Inc., the nation’s leading specialty mattress retailer with some 3,000 stores across the country including locations in Rome and Cartersville, has filed voluntary Chapter 11 bankruptcy, according to a media release from the company. Plans are to close up to 700 stores by Christmas with 200 closing within the next few days.
According to USA Today, there are five Georgia stores on the initial list of 200 closing soon, which include locations in Dalton, Marietta, Augusta, Macon and Alpharetta. There are no changes expected at the Rome store located at 491 Turner McCall Boulevard (Charles Hight Square) or at the Cartersville store located at 215 Cherokee Place at the present time.
Media release: Mattress Firm, Inc. (“Mattress Firm” or “the Company”), the nation’s leading specialty mattress retailer, today announced that it is taking action to strengthen its balance sheet and optimize its store footprint. To achieve these objectives, the Company and its subsidiaries today filed voluntary Chapter 11 restructuring cases in the U.S. Bankruptcy Court in Delaware to implement a prepackaged plan of reorganization that, among other things, provides the Company access to new financing to support the business, establishes an efficient and orderly process for closing certain economically inefficient store locations, and provides for all trade creditors to continue being paid in full for goods and services provided.
Mattress Firm will continue to be the largest specialty mattress retailer in the nation with thousands of stores across the country and remains committed to offering a large selection of quality, brand name mattresses and bedding products at competitive prices. The Company is continuing to serve customers as usual at stores across the nation and online. Mattress Firm anticipates that deliveries will be made as scheduled, and the Company intends that warranties, guarantees and other customer programs will be honored as usual.”
Steve Stagner, Executive Chairman, President and 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. Leading up to the holiday shopping season, we will exit up to 700 stores in certain markets where we have too many locations in close proximity to each other. We intend to use the additional liquidity from these actions to improve our product offering, provide greater value to our customers, open new stores in new markets, and strategically expand in existing markets where we see the greatest opportunities to serve our customers.”
To facilitate the store optimization plan, the Company has filed motions with the court seeking authority to reject up to 700 leases. An initial group of approximately 200 stores are expected to be closed in the next few days. Decisions about additional store closings will be made in the next few weeks.