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Mattress Firm, the largest US mattress retailer, announced Friday that it had filed for Chapter 11 protection in order to take steps to strengthen its balance sheet and reorganize its store footprint.
Under the protection of bankruptcy, the retailer will close a number of its stores. He has already filed court motions to dismiss 700 leases. It will start closing about 200 stores in the next few days.
She plans to complete the restructuring of prepackaged products within 45 to 60 days, he added.
It has obtained about $ 250 million in so-called debtor-operator financing to support its bankruptcy activities. It has also secured $ 525 million of senior secured credit facilities, enabling it to support its emergence after bankruptcy and continuing operations.
Mattress Firm states that it filed motions for the continued payment of salaries and benefits related to the health and well-being of employees, as well as compliance with policies and programs of its clients.
She indicated that she was seeking court approval to pay her suppliers and contractors in full for all services provided before and after filing for bankruptcy.
Tempur Sealy International shares surged more than 5% on news. The mattress company has unexpectedly withdrawn its Mattress Firm products in 2017 as a result of price disputes.
The South African distributor Steinhoff International Holdings acquired Mattell Firm Firm for $ 3.8 billion in 2016. The conglomerate, which owns more than 40 distribution brands, including Conforama in France and Poundland in the United Kingdom, was the victim from an accounting scandal that has crushed its course and created liquidity problems. Its shares are down nearly 54% since January.
Mattress Firm will strengthen its balance sheet and optimize the store's footprint through pre-packaged financial restructuring supervised by the court
Customers will continue to find the mattresses and bedding accessories they need in stores and on the website as the company will take the necessary steps to ensure that deliveries are as planned and seamless. Guarantees and warranties will be honored as usual suppliers and contractors to be fully paid for all goods and services provided. The company guarantees commitments of a $ 250 million DIP financing in order to support its operations The company expects a complete restructuring within 45 to 60 days with commitments of one. $ 525 million in senior secured credit facilities to fund the emergence of
HOUSTON – October 5, 2018 – Mattress Firm, Inc. ("The Company"), the nation's leading specialty mattress retailer, announced today that it is taking steps to strengthen its balance sheet and optimize its business. store footprint. To achieve these objectives, the Company and its subsidiaries filed Chapter 11 restructuring proceedings with the US Bankruptcy Court of Delaware in order to implement a pre-packaged reorganization plan including the possibility for company to have access to new funding to support its activities. an efficient and orderly process for the closure of some economically inefficient stores and allows all commercial creditors to continue to be fully paid for the goods and services provided.
Mattress Firm will remain the largest specialty mattress retailer in the country with thousands of stores across the country and remains committed to providing a broad selection of quality branded bedding and bedding products at competitive prices. The company continues to serve customers as usual in stores across the country and online. Mattress Firm anticipates that deliveries will be made as planned and the company intends that warranties, warranties and other customer programs will be honored as usual.
Steve Stagner, Executive Chairman, President and CEO of Mattress Firm, said: "The process we started today will allow us to strengthen our balance sheet and accelerate the optimization of our store portfolio. up to 700 stores in certain markets where we have too many sites close to each other.We intend to use the additional cash flow from these actions to enhance our product offering, provide greater value to our customers, open new stores in new markets, and strategically expand into existing markets where we see the best opportunities to serve our customers. "
"Mattress Firm is the leading specialty mattress retailer in the country and we will continue to deliver unparalleled value to our customers by providing the highest quality beds at prices that suit every budget today and tomorrow," continued Mr. Stagner. "We thank our suppliers and partners for their continued support, as well as the vendors we partner with to deliver to all of our markets, which will continue to be fully paid, in the normal course of business. , for the products and services provided, the members of our team for their continued commitment and dedication to serving our customers. "
As part of its pre-packaged restructuring plan, Mattress Firm has received funding commitments of approximately $ 250 million, which, subject to approval by the Court, will be available to support its ongoing activities during the proceeding. under Chapter 11. The Company has also secured $ 525 million in senior secured credit facilities to exit Chapter 11 and support its operations thereafter. Mattress Firm plans to complete the prepackaged restructuring process in the next 45 to 60 days.
Mattress Firm has filed with the court a number of customary motions to obtain authorization to support its activities during the restructuring process. These include the power to continue to pay employee wages and health and social benefits, and to continue to respect client policies and programs, including guarantees, returns / exchanges and promotions. The company's pre-packaged reorganization plan provides that this process will not be altered by all suppliers and contractors. As a result, the Company has filed an application for leave of the court to pay in full and on normal terms suppliers and contractors for all goods and services provided before and after the filing date.
To facilitate the store optimization plan, the Company has filed motions with the court seeking leave to reject up to 700 leases. An initial group of about 200 stores should be closed in the coming days. Decisions regarding the closure of additional stores will be made in the coming weeks.
Additional information can be obtained by visiting the company's restructuring website at www.mattressfirm.com/restructuring. Court documents and other documents pertaining to the process overseen by a US court are available on a separate website, maintained by the Company's Claims Officer, Epiq, at http://dm.epiq11 .com / MattressFirm. Information is also available by calling 877-214-3592 (toll-free in the United States) or 503-520-4465 (for correspondents outside the United States).
A & G Realty Partners assists the Company in its store closure and lease restructuring program. Mattress Firm owners are invited to contact A & G Realty Partners via its website, www.agrealtypartners.com. Sidley Austin LLP acts as legal counsel for the company, AlixPartners LLP as a financial advisor and Guggenheim Securities, LLC as a restructuring advisor. About Mattress Firm Founded in 1986, Mattress Firm strives to help customers find the beds they want at the price that suits them. Today, Mattress Firm has become the largest specialty mattress retailer in America, with convenience stores in 49 states nationwide and a passion for helping people find the right bed. Mattress Firm optimizes the budget of its customers through a wide selection of mattresses and bedding accessories from major manufacturers and major brands, including Serta, Simmons, Tulo, Sleepy's, Chattam & Wells and Purple. In 2016, Steinhoff International Holdings, NV acquired Mattress Firm. Committed to serving its communities, the Mattress Firm Foster Kids initiative, a program of the Ticket to Dream Foundation, organizes six fundraising campaigns a year in communities across the country, to provide the resources needed to succeed.
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