Steinhoff International said its U.S. subsidiary Mattress Firm Inc had come out of bankruptcy with access to $525 million in exit financing.
The move came less than two months after the retailer filed for Chapter 11 protection in early October 2018, giving it room to reorganize its business and stabilize its finances.
Steinhoff said Mattress Firm had shut roughly 660 underperforming stores as part of the restructuring. The South African retail group has also been working with creditors on a broader effort to restructure debt across some of its units after disclosing multi-billion euro holes in its balance sheet.
The company’s bankruptcy exit marked a key step in the turnaround effort for the mattress chain, which had been under pressure to cut costs and preserve liquidity.
