Steinhoff's Mattress Firm files for Chapter 11 bankruptcy

Steinhoff's Mattress Firm files for Chapter 11 bankruptcy

Mattress Firm said in a court filing that it will not conduct typical liquidation sales, where customers might otherwise score a going-out-of-business deal.

Mattress Firm, the struggling, 3,300-store nationwide retailer of beds, filed Chapter 11 bankruptcy on Friday - and plans to shutter up to 700 of its worst-performing locations.

The company has not released a list of store closings but several Jacksonville locations fit Stagner's description of stores that are in close proximity to each other.

Rebranding acquired stores as Mattress Firm locations worsened the retailer's troubles.

According to court documents, the nation's largest mattress retailer has more than $1 billion in liabilities and has more than 50,000 creditors.

The Okemos store is part of the roughly 200 stores that will close in the next few days.

Mattress Firm had planned to open a store there, but later changed its mind after construction was delayed to comply with environmental assessments.

It also plans to add two new stores in the state.

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A Mattress Firm store, a brand owned by Steinhoff, is shown in Encinitas, California, U.S., January 25, 2018. The company declined to make Stagner available for an interview.

Analysts said Mattress Firm had too many locations and didn't do enough to keep up with an increasing number of online competitors that offered convenience and more transparent pricing.

The retailer, which said it will continue to serve customers as usual at stores and online during the process, has also received $775 million to fund ongoing operations and repay debt and costs associated with the restructuring.

In December 2017, Steinhoff CEO Markus Jooste and its executive chairman, Christo Wiese, resigned amid investigations into accounting irregularities, The Wall Street Journal reported.

Stores could help Casper stand out in a crowded mattress market.

The scandal wiped more than 90 percent off Steinhoff's market value and brought the company under intense regulatory scrutiny.

A search for a similar bed on Mattress Firm's website yields dozens of results, potentially overwhelming customers.

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