Mattress Firm files for bankruptcy

Updated 10/5/2018 9:51 AM

Mattress Firm Inc., the troubled bed retailer of Steinhoff International Holdings, filed for bankruptcy in Delaware along with more than a dozen affiliates.

Mattress Firm has dozens of locations in the suburbs, including four in Schaumburg alone.

The Chapter 11 petition Friday from the Houston-based company listed more than $1 billion in both debt and assets, and includes units of well-known brand names such as Sleepy's and Among the largest unsecured creditors are Simmons Manufacturing and Serta Mattress.

The company plans to complete a restructuring within 45 to 60 days, closing poorer performing stores, and has a commitment of $525 million in senior secured credit to fund its turnaround, according to a statement. Mattress Firm says on its website that it has more than 3,000 stores across 49 states, and will keep operating as usual as it moves through a restructuring.

"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," Steve Stagner, CEO of Mattress Firm, said in the statement.

The company said the bankruptcy includes a prepackaged restructuring plan, meaning it already has the approval of key stakeholders, but will still need court approval. Steinhoff said last month it was evaluating ways to attract extra funding, and bondholders were said to be considering a loan of about $300 million into the firm as part of a bankruptcy filing.

The company didn't immediately return a message seeking comment.

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