PARSIPPANY — Mattress Firm plans to close up to 700 stores as part of its Chapter 11 bankruptcy, including more than 200 within days.
On Friday, October 5, Mattress Firm, Inc. and its subsidiaries filed voluntary Chapter 11 restructuring cases in the United States Bankruptcy Court for the District of Delaware to implement a prepackaged plan of reorganization that, among other things, provides the Company access to new financing to support the business, establishes an efficient and orderly process for closing certain economically inefficient store locations, and provides for all trade creditors to continue being paid in full for goods and services provided.
Part of Mattress Firm’s problem is its huge network of stores. The Houston-based retailer viewed multiple stores in cities as a way to build visibility, and spread out advertising and distribution costs. At the same time, it was snapping up competitors like Sleepy’s, Sleep Train, Back to Bed and Bedding Experts in a bid to build a national brand, and taking over some of those locations.
After a major acquisition spree in recent years, the chain has 3,230 company-owned stores and another 125 franchised locations. It has nearly 10,000 employees.
Here’s the list of more than Mattress Firm locations expected to close within days and be vacated entirely by the end of the month, according to court filings:
- 745 Route 46, Parsippany 07054
- 557 Route 130 North, East Windsor 08520
- 92 Ferry Street, Newark 07105
- 3231 Brunswick Pike, Lawrence Township 08648
- 80 South Whitehorse Pike, Hammonton 08037
- 243 US Highway 46 West, Saddle Brook 07663
The Debtors filed their proposed Joint Prepackaged Plan of Reorganization and the Disclosure Statement related thereto, which is subject to approval by the United States Bankruptcy Court for the District of Delaware. Under the terms of the Plan, all claims are unimpaired.
Mattress Firm will continue to be the largest specialty mattress retailer in the nation and is committed to offering a large selection of quality, brand name mattresses and bedding products at competitive prices. The Company is continuing 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.
Mattress Firm’s case has been assigned to Judge Christopher S. Sontchi and Case No. 18-12241. The Docket can be accessed by clicking here or through the website maintained by the United States Bankruptcy Court for the District of Delaware.