Mattress Firm has filed for bankruptcy as it prepares to close as many as 700 stores across the United States due to exploding competition from online retailers such as Amazon and Casper. With new entrants like online retailer Casper now selling mattresses with little to no markup, that pricing umbrella has begun to collapse.
In Chapter 11 bankruptcy, retailers typically try to get out of expensive leases and slash debt to have a better chance of surviving profitably. Mattress Firm plans to close 200 stores in the coming days.More news: Man's Sea Snake Death Believed to Be Australia's First
South Africa-based Steinhoff acquired Mattress Firm in 2016. Mattress Firm - which operates 10 stores in the Treasure Valley - has a store a third of a mile north of there, at 16594 Midland Boulevard, but it's unclear whether that store is being closed or will remain open.More news: Brett Kavanaugh is confirmed as Supreme Court Justice
Serta Simmons is merging with direct-to-consumer mattress company Tuft & Needle, CNBC first reported, to transform its business as the industry changes. Its shares are down almost 54 percent since January.
The retailer, which went on a buying spree in recent years adding regional chains, has secured $250 million in special financing to support operations while it reorganizes.More news: Scott Wilson Dead at 76: 'Walking Dead' Actor Dies
"The process we have initiated today will allow us to strengthen our balance sheet and accelerate the optimization of our store portfolio", said Steve Stagner, the company's executive chairman and CEO. All warranties, guarantees, and other customer programs-such as the chain's one-year "Love Your Mattress" program-will continue to be honored. Some, like Toys R Us, have been unable to reorganize forcing them to liquidate.
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