Young Journalists Club | Latest news of Iran and world

News ID: 27073
Publish Date: 16:26 - 07 August 2018
TEHRAN, August 7 - Mattress Firm Inc, the largest U.S. mattress retailer, is considering a potential bankruptcy filing as it seeks ways to get out of costly store leases and shut some of its 3,000 locations that are losing money, people familiar with the matter said.

Exclusive: Mattress Firm explores U.S. bankruptcy to close storesTEHRAN, Young Journalists Club (YJC) -Mattress Firm Inc, the largest U.S. mattress retailer, is considering a potential bankruptcy filing as it seeks ways to get out of costly store leases and shut some of its 3,000 locations that are losing money, people familiar with the matter said. 

Mattress Firm’s deliberations offer the latest example of a U.S. brick-and-mortar retailer struggling financially amid competition from e-commerce firms such as Amazon.com Inc (AMZN.O). Shares of Mattress Firm competitor Tempur Sealy International Inc (TPX.N) jumped on the news and ended trading on Monday up 5.2 percent at $52.64.

Mattress Firm’s South African parent, Steinhoff International Holdings NV (SNHJ.J), has been working on a deal to restructure the debt of some subsidiaries with its creditors, following an accounting scandal. Creditors agreed last month to hold off on their debt claims for three years.

Steinhoff acquired Mattress Firm for $3.8 billion in 2016.

Both Houston-headquartered Mattress Firm and Steinhoff are working with consulting firm AlixPartners LLP, the two sources said this week. AlixPartners helps companies plan and execute turnaround strategies, and is often brought in to lay the ground for bankruptcy.

The sources, who requested not to be identified because the plans are private, cautioned that Mattress Firm has not made any final decisions and its plans could change.

Representatives for Mattress Firm and AlixPartners declined to comment. Steinhoff did not respond to requests for comment.

Filing for bankruptcy would allow Mattress Firm to clean up its real estate portfolio and improve cash flow and profitability, analysts at Piper Jaffray Companies (PJC.N) wrote in a research note last week.

Source: Reuters

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