The closures, it says, will help make the remaining stores more profitable. Steve Stagner is the CEO of Mattress Firm. He said the company plans to “provide greater value to our customers, open new stores in new markets and strategically expand in existing markets where we see the greatest opportunities to serve our customers.”
The company says it will complete the closures within two months.
The Balance Sheet
As it disclosed its financials to the court, Mattress Firm revealed that it currently has over $1 billion in liabilities. The liabilities are spread over 50,000 creditors. The largest creditor is Simmons Manufacturing Co. Mattress Firm owes it almost $65 million.
Steve Stagner is the CEO of Mattrress Firm. He says that filing bankruptcy will give the company an opportunity to “strengthen our balance sheet.”
Although the company had sales last year of $3 billion, it says it will likely lose $150 million this year.
Outlook
Steinhoff International Holdings, a South Africa company, bought Mattress Firm in 2016. It paid $3.8 billion. Its stock price fell recently when the company reported some accounting irregularities.
