Mattress Firm emerges from bankruptcy; store footprint ‘optimized’

By Caroline Salls

Pittsburgh, Nov. 21 – Mattress Firm, Inc. completed its financial restructuring and emerged from Chapter 11 bankruptcy on Wednesday, according to a company news release.

The company’s pre-packaged plan of reorganization was confirmed by the U.S. Bankruptcy Court for the District of Delaware on Nov. 16.

Under the plan, Mattress Firm’s pre-bankruptcy secured debt will be paid in full.

Holders of general unsecured claims, other than intra-group loan claims, will be paid in full in cash.

The equity of reorganized debtor Mattress Holdco, Inc. will continue to be held by Mattress Firm Holding Corp. The equity of the holding company will continue to be held by Stripes US Holding, Inc.

Lenders providing an exit term loan facility will receive equity and payment-in-kind debt as consideration for their financing commitments.

Intra-group loan affiliates have agreed to receive no distribution.

Mattress Firm said it moves forward with an optimized store footprint of 2,600 stores across the country and $525 million of committed exit financing to support operations and future growth initiatives, including a $125 million revolving credit facility that will be undrawn at closing.

“This is an exciting day for Mattress Firm as we emerge a stronger and more competitive company,” executive chairman, president and chief executive officer Steve Stagner said in the release.

“With an optimized store footprint, stronger balance sheet and significant liquidity, we will be able to more efficiently focus on our strength.

“We knew that our unprecedented growth had led to duplicative store locations in many of our markets. Now, having completed our operational and financial restructuring, we have the right store locations to not only better serve our customers, but also to fuel future growth.

“Going forward, we will be intensely focused on enhancing our product offering, driving disciplined and results-oriented operations and building an integrated and educational shopping experience.”

Sidley Austin LLP served as the company’s legal counsel, AlixPartners LLP served as its financial adviser and Guggenheim Securities, LLC served as its investment banker and restructuring adviser.

Mattress Firm, a Houston-based mattress retailer, filed bankruptcy on Oct. 5. The Chapter 11 case number is 18-12241.

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