The firm’s strategic decision to voluntarily file an early protection from bankruptcy in October 2018, gave it some much needed breathing room.
On Thursday, Steinhoff International stated its Mattress Firm Inc unit, the largest mattress retailer in the United States, has emerged out of bankruptcy having got access to $525 million in exit financing; the development comes within two months of filing for bankruptcy protection.
Mattress Firm has closed around 660 under-performing stores, said Steinhoff. Despite these closures, Houston-based Steinhoff stated, it still has nearly 2,600 stores across the United States.
“Today’s announcement is a further positive step in the wider Steinhoff restructuring process, which continues to make good progress,” said Danie van der Merwe, Steinhoff’s acting CEO.
Founded in 1986, Mattress Firm, had voluntary filed for bankruptcy protection in early October 2018, which allowed it some breathing room to restructure and shore up its finances.
Of late, the retail industry in the U.S. has seen a series of bankruptcies, including that of Toys “R” Us, midst mounting pressure from e-commerce companies such as Amazon.com and Wal-Mart Inc.