Steinhoff International said its Mattress Firm unit has come out of Chapter 11 protection with access to $525 million in exit financing, ending a bankruptcy process that lasted about two months.
The Houston-based mattress chain closed about 660 underperforming stores during the restructuring. Even after those closures, it still has about 2,600 stores across the United States.
Steinhoff acting chief executive Danie van der Merwe said the move marked progress in the wider turnaround effort. “Today’s announcement is a further positive step in the wider Steinhoff restructuring process, which continues to make good progress,” he said.
Mattress Firm was founded in 1986 and filed for voluntary bankruptcy protection in early October as it tried to stabilize its finances.
The company’s court filing came during a wider wave of retail bankruptcies in the United States, including Toys “R” Us, as online competition continued to pressure traditional chains.
