Mattress Firm Preparing to File for Chapter 11 Bankruptcy This Week
Reuters reports that Houston-based Mattress Firm, Inc. the largest U.S. mattress retailer with 3,000 stores is preparing to file for Chapter 11 bankruptcy protection by the end of this week. Additionally, Reuters cites that its South African parent company, Steinhoff International Holdings NV, is encountering debt challenges, as well.
It is expected that the filing would be a shedding of unprofitable stores to attempt to secure the company, much like Payless did in its Chapter 11 filing. A filing at the end of this week would likely mean that Mattress Firm does not pay its October rents on time, as it moves to reject a number of leases.