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Two Mattress Firm stores, a Steinhoff brand, are located across the street in Encinitas, California, United States, January 25, 2018. REUTERS / Mike Blake
(Reuters) – Steinhoff International (SNHJ.J) said Thursday that its Mattress Firm Inc., the largest US mattress retailer, was out of bankruptcy with $ 525 million in exit funding within two months of filing for protection under chapter 11.
Mattress Firm has also closed about 660 underperforming stores, said Steinhoff, who is working on an agreement to restructure the debt of some units after revealing multi-billion deficits in its balance sheet.
Store closings still leave the Houston-based company with about 2,600 stores across the United States.
"Today's announcement is another positive step in Steinhoff's broader restructuring process, which continues to progress," said Danie van der Merwe, Managing Director of Steinhoff.
Mattress Firm, founded in 1986, had filed for voluntary bankruptcy protection in early October, giving it room to maneuver to restructure and strengthen its finances.
The retail sector has seen a series of bankruptcies, including Toys "R" Us, over the past two years, under increasing pressure from ecommerce companies like Amazon.com Inc. (AMZN.O).
Reportage of Muvija M in Bengaluru; Edited by Gopakumar Warrier
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