Texas Based Mattress Firm Files for Chapter 11 Bankruptcy
If you've ever wondered where the money goes after you pay Mattress Firm for a new mattress, well, you're not alone.
According to their press release, Mattress Firm is going to strengthen balance sheet and optimize store footprint through court-supervised prepackaged financial restructuring.
Yep, fancy speak for saying we messed up bad, and other people are going to pay for it as we file for Chapter 11 protection.
It seems that steps are being taken so deliveries will be made as scheduled, and without interruption. Plus, warranties and guarantees will be honored as usual.
This information is being regurgitated from the mouth of Steve Stanger, Executive Chairman, President, and CEO of Mattress Firm. He also says..."Leading up to the holiday shopping season, we will exit up to 700 stores in certain markets where we have too many locations in close proximity to each other. 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."
KWTX is reporting that the nation's largest mattress retailer has more than $1 billion in liabilities and has more than 50,000 creditors. That includes Simmons Manufacturing Company who is owed nearly $65 million.