Mattress Firm’s plan of reorganization has been confirmed by the U.S. Bankruptcy Court in Delaware. Subsequently, Mattress Firm expects to complete its restructuring and emerge from Chapter 11 in the coming days.
Steve Stagner, executive chairman, president and CEO of Mattress Firm, said, “We are pleased to receive the court’s approval of our plan, which has positioned Mattress Firm to emerge as a stronger and more competitive company, within the 45 to 60 day timeframe we initially targeted. This short process has enabled Mattress Firm to strengthen our balance sheet and optimize our store footprint, giving us the flexibility to continue with our mission, which is to offer our customers the best beds at compelling values. Furthermore, our significantly improved financial and operating position will enable us to strategically expand our business in new as well as existing markets, while continuing to focus on enhancing our omni-channel capabilities and product offerings.”
Upon emergence, the company will have a strengthened balance sheet, strong liquidity position and an optimized store footprint of approximately 2,600 stores across the country.
Mattress Firm declared bankruptcy at beginning of October and had received $250 million in DIP financing agented by Barclays. This approved plan will allow the company to potentially emerge from bankruptcy in time for the holiday season.
A&G Realty Partners is assisting the company with its store closing and lease restructuring program. Sidley Austin is serving as its legal counsel, AlixPartners as its financial advisor and Guggenheim Securities as its restructuring advisor.
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Barclays Agents $250MM DIP Financing for Mattress Firm
