Mattress Firm To Close Up To 700 Stores, Files For Bankruptcy

HOUSTON, TX — Houston-based retailer Mattress Firm will shutter roughly 700 stores after filing for Chapter 11 bankruptcy protection Friday. The decision to close stores in certain markets was made because there are "too many locations in close proximity to each other," the company said in a news release.

"We intend to use the additional liquidity from these actions to improve our product offering, 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," Steve Stagner, president and CEO of Mattress Firm, said in the news release.

Mattress Firm plans on closing 200 stores in the next few days. The company has obtained commitments for $525 million of credit and expects to complete its restructuring process within the next 45 to 60 days.

The company was sued Wednesday as part of a class action lawsuit brought by at least 100 current or former Mattress Firm employees in Washington over pay and breaks. In another lawsuit, the company's former chairman and billionaire Christo Wiese is suing Mattress Firm parent company Steinhoff International Holdings NV, a South African holding company, for $4 billion, Bloomberg reported.

Mattress Firm was founded in 1986 and before today's news, had more than 3,000 stores, the Chicago Tribune reported.

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