Houston — Mattress Firm, Inc., the nation's leading specialty mattress retailer, has successfully completed its financial restructuring and emerged from Chapter 11. The company has closed more than 600 stores over the past couple of months and now moves forward with an optimized store footprint of approximately 2,600 stores.
The company also has $525 million of committed exit financing to support operations and future growth initiatives, including a $125 million revolving credit facility that will be undrawn at closing.
"With an optimized store footprint, stronger balance sheet and significant liquidity, we will be able to more efficiently focus on our strength: delivering the best beds at the best value to millions of customers across the country,” says Steve Stagner, executive chairman, president and CEO of Mattress Firm. “We knew that our unprecedented growth had led to duplicative store locations in many of our markets. Now, having completed our operational and financial restructuring, we have the right store locations to not only better serve our customers, but also to fuel future growth. Going forward, we will be intensely-focused on enhancing our product offering, driving disciplined and results-oriented operations and building an integrated and educational shopping experience."
The company and its subsidiaries filed for Chapter 11 in early October and completed its restructuring process in just 48 days. Mattress Firm remains the largest specialty mattress retailer in the nation.
During restructuring, Mattress Firm continued to serve customers as usual at stores across the nation and online. Deliveries were made as scheduled, and warranties, guarantees and other customer programs were honored as usual.
Of the store closings, Stagner noted that the company — which acquired more than 1,000 Sleepy’s stores in 2015 — had too many locations in close proximity to each other. He says the company intends to open new stores in new markets, and strategically expand in existing markets.
Sidley Austin LLP served as the company's legal counsel; AlixPartners LLP served as its financial advisor; and Guggenheim Securities, LLC served as its investment banker and restructuring advisor. A&G Realty Partners assisted the company with its store closing and lease restructuring program. Barclays served as the sole arranger and sole bookrunner of the exit facilities, and Paul Hastings LLP served as counsel to Barclays.
Founded in 1986, Mattress Firm has grown to be America's largest specialty mattress retailer, with neighborhood stores in 49 states. In 2016, Mattress Firm was acquired by Steinhoff International Holdings, N.V. For more information, visit www.mattressfirm.com/restructuring.
SOURCE: Mattress Firm