Steinhoff’s Mattress Firm exits bankruptcy

Steinhoff International’s Mattress Firm unit, the largest US mattress retailer, has emerged out of bankruptcy with access to $525m in exit financing, within two months of filing for Chapter 11 protection.

Mattress Firm also closed about 660 underperforming stores, Steinhoff said on Thursday. Steinhoff has

been working on a deal to restructure the debt of some units after revealing multibillion-euro holes in its balance sheet.

The store closures still leave the Houston-based company with about 2,600 stores across the US.

“Today’s announcement is a further positive step in the wider Steinhoff restructuring process, which continues to make good progress,” Steinhoff acting CEO Danie van der Merwe said.

Mattress Firm, founded in 1986, had filed for voluntary bankruptcy protection in early October, gaining some breathing room to restructure and shore up its finances.

The retail industry has seen a series of bankruptcies, including Toys ‘R’ Us, over the past couple of years on mounting pressure from e-commerce companies like Amazon.com. 

ReutersSteinhoff International’s Mattress Firm unit, the largest US mattress retailer, has emerged out of bankruptcy with access to $525m in exit financing, within two months of filing for Chapter 11 protection.

 

Mattress Firm also closed about 660 underperforming stores, Steinhoff said on Thursday. Steinhoff has been working on a deal to restructure the debt of some units after revealing multibillion-euro holes in its balance sheet.

The store closures still leave the Houston-based company with about 2,600 stores across the US.

“Today’s announcement is a further positive step in the wider Steinhoff restructuring process, which continues to make good progress,” Steinhoff acting CEO Danie van der Merwe said.

Mattress Firm, founded in 1986, had filed for voluntary bankruptcy protection in early October, gaining some breathing room to restructure and shore up its finances.

The retail industry has seen a series of bankruptcies, including Toys ‘R’ Us, over the past couple of years on mounting pressure from e-commerce companies like Amazon.com

 

• Reuters