Mattress Firm and its subsidiaries filed voluntary Chapter 11 restructuring cases in the U.S. Bankruptcy Court in Delaware to implement a prepackaged plan of reorganization.
Mattress Firm remains committed to offering a large selection of quality, brand name mattresses and bedding products at competitive prices. The company is cont, nuing 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.”
In conjunction with its prepackaged restructuring plan, Mattress Firm received commitments for approximately $250 million in debtor-in-possession financing, which, subject to Court approval, will be available to support its ongoing operations during the Chapter 11 proceedings. According to first day motions filed with the court, Barclays will serve as administrative agent and co-collateral agent for the DIP with Citizens Bank as co-collateral agent.
The Company also obtained commitments for $525 million of senior secured credit facilities enabling it to emerge from Chapter 11 and support operations thereafter. Mattress Firm expects to complete the prepackaged restructuring process within the next 45 to 60 days.
Founded in 1986, Mattress Firm strives to help customers find the beds they want at the price that fits their budget.
