Houston — Mattress Firm plans to close 200 underperforming stores over the next 18 months. The retailer currently operates approximately 3,400 stores across the United States.
Steinhoff International Holdings N.V., the parent company of the Houston-based retailer, made the announcement at a December 19, 2017 lenders’ meeting. The locations to be shuttered have not yet been made public. The company said it will invest $200 million this year to continue restructuring, which includes reorganizing sales operations, upgrading internal leadership positions and removing leftover products from Tempur-Sealy International Inc., which cancelled its contracts with Mattress Firm in 2017.
In addition to eliminating stores, the company will increase its private labels, boost online presence and improve customer service, in an effort to reach its revenue goals. Mattress Firm currently generates $3.3 billion in revenue annually, and is aiming to reach more than $4 billion over the next 5 years. Additionally, Mattress Firm recently entered into a revolving credit facility for up to $225 million with Barclays for working capital needs and other general corporate purposes.
For more information, visit http://newsroom.mattressfirm.com/.
— John Nelson