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Mattress Firm filed for bankruptcy Friday, while the bed retailer announced plans to close hundreds of stores.
The largest chain of mattresses in the country, which has 3,400 sites across the country, will close 200 stores in the coming weeks and no less than 700 by the end of the year, according to its record of chapter 11 asking for the protection of bankruptcy. The company plans to continue operating and paying its suppliers.
"Before the end-of-year holiday season, we're going to close up to 700 stores in some markets where we have too many sites nearby," said Steve Stagner, CEO of the company, in a statement. . The declaration of bankruptcy will allow the company to "strengthen our balance sheet", he added.
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According to court documents, Mattress Firm has a liability of more than a billion dollars and has more than 50,000 creditors. It owes its main creditor, the mattress maker Simmons Manufacturing Co., located in Atlanta, nearly $ 65 million.
The mattress companies have sales of more than $ 3 billion, but according to court documents, the company said it expects to lose about $ 150 million during the 2018 fiscal year.
Mattress Firm is the latest in a series of bankruptcies of national retailers to the extent that consumers have chosen to buy products online.
The company's filing comes just days after Amazon announced that it would embark on the online business of bed-in-bed solutions. Walmart also clashed earlier this year with its own brand of upscale mattresses online, Allswell.
Founded in 1986, Mattress Firm bought the competitor Sleepy's for $ 780 million in 2015.
The company's difficulties include an accounting scandal at its parent company, Steinhoff International, and the loss of a major contract with Tempur Sealy International last year.
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