Mattress Firm files for bankruptcy, closing up to 700 stores

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Mattress Firm

CHICAGO, IL – DECEMBER 06: A sign hangs outside a Mattress Firm store on December 6, 2017 in Chicago, Illinois. Steinhoff International Holdings N.V., which is the parent company of Mattress Firm, saw its stock value plummet more than 60 percent today after the resignation of CEO Markus Jooste and an announcement from the company […]

HOUSTON (AP) — Mattress Firm, Inc., the nation’s largest mattress retailer, is filing for bankruptcy protection and plans to close up to 700 stores around the country.

The Houston-based company filed for Chapter 11 bankruptcy protection Friday in federal court in Delaware.

According to court documents, Mattress Firm has more than $1 billion in liabilities and has more than 50,000 creditors. It owes its largest creditor, mattress maker Simmons Manufacturing Co., nearly $65 million.

In a statement, CEO and president Steve Stagner says the bankruptcy filing will allow the company to “strengthen our balance sheet” and close stores in certain markets with “too many locations in close proximity to each other.”

The company has more than 3,000 stores in the U.S. and in recent years had been aggressively expanding as it purchased competitors.

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