Nation's largest mattress retailer, Mattress Firm, files for bankruptcy

Casper founders wanted to modernize mattress shopping

Casper founders wanted to modernize mattress shopping

The company filed for Chapter 11 bankruptcy protection in an attempt to strengthen its balance sheet and optimize its store footprint.

Mattress Firm, a Houston, Texas-based mattress discount firm that filed for Chapter 11 bankruptcy protection Friday, will keep its 10 ME stores open as it looks to close up to 700 underperforming stores nationwide.

The retailer has 3,500 stores across the USA, reflecting a time when the economics of mattress retailers was such that more was better. There are more than 3,300 Mattress Firm stores in the United States. It has six locations in Summit County, including a store in Springfield Township.

Steinhoff said Mattress Firm had recently suffered from ineffective brand marketing and an insufficient presence in the high-end market segment. About 200 stores are expected to close in the next few days, and decisions about additional store closings will be made soon after.

Redditors argued that the chain had too many stores in the U.S. given that mattresses are a product that is typically bought every seven to 10 years.

Two stores are less than a mile apart on Town Center Parkway.

ME locations of Mattress Firm stores were not among the 209 listed for immediate closure in documents sent to the BDN by Mattress Firm representative Erica Martinez of marketing firm Jackson Spaulding.

Mattress Firm said it has secured $250 million in financing that will allow it to continue operations and pay suppliers.

Steinhoff International Holdings bought Mattress Firm for $2.4 billion in August 2016.

At the time, then-CEO Ken Murphy denied the money-laundering allegations and defended Mattress Firm's massive store count.

The company, founded in 1986, has sales of more than $3 billion.

"The past few years have been tough for Mattress Firm".

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.