The stores will close under Chapter 11 of the United States Bankruptcy Code, in an effort to strengthen the business’s balance sheet, optimise store footprint and accelerate the group’s turnaround amidst the ongoing debt restructuring of Steinhoff International Holdings N.V.
As part of its store optimisation plan, Mattress Firm is looking to reject up to 700 leases. It will make a decision about additional store closings in the weeks ahead.
“Mattress Firm has been facing significant operational challenges which management is addressing through its turnaround plan,” Steinhoff International chief executive Danie van de Merwe said.
“Considering the Group’s current position, we believe the Mattress Firm recapitalisation is the best way to support and accelerate the turnaround plan so as to ensure a future for Mattress Firm and its employees and unlock value for shareholders over time.”
The mattress retailer has received loans of approximately US$775 million (AU$1.09 billion) from various lenders to facilitate its repayment of outstanding debts and transaction fees and to provide working capital moving forward.
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