Categories LATEST, Other Industries
America’s largest mattress company files for bankruptcy protection
Mattress Firm, the biggest retailer of beds in the US, on Friday filed for Chapter 11 bankruptcy protection in a move to restructure the troubled business. Under the protection filed at Delaware Bankruptcy Court, the company said it aims to complete its restructuring measures within two months, which includes the initial closure of about 200 stores.
Mattress Firm, which is owned by South African firm Steinhoff International Holdings, has also sought approval for rejection of around 700 leases.
In addition, the company has committed to senior secured credit of $525 million for the restructuring purposes.
In October last year, the company had sued two former employees for allegedly conspiring to push the company to open more stores.
“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,” CEO Steve Stagner said in a statement.
The company’s profits have been weighed down by too many store locations as well as tight competition from startups like Caspar. In October last year, the company had sued two former employees for allegedly conspiring to push the company to open more stores. There are over 3,500 Mattress Firm stores across the US.
Shares of Tempur Sealy International (TPX), which pulled out its products last year from Mattress Firm stores due to clashes over product pricing, fell almost 2% following the news.
Most Popular
CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%
Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss
Key metrics from Nike’s (NKE) Q2 2025 earnings results
NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net
FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips
Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,
Comments
Comments are closed.