The largest U.S. mattress retailer, Mattress Firm, said Friday it has filed for Chapter 11 bankruptcy protection so it can take steps to strengthen its balance sheet and reshape its store footprint.
Under bankruptcy protection, the retailer will close a number of its stores. It has already filed court motions for approval to reject up to 700 leases. It will begin to close roughly 200 stores in the next few days.
It expects to complete prepackaged restructuring within the next 45 to 60 days, it said.
It has secured roughly $250 million in so-called debtor-in-possession financing to support its operations under bankruptcy. It has also secured $525 million in senior secured credit facilities to support its emergence from bankruptcy and continuing operations.