Mattress Firm files for bankruptcy and plans to close up to 700 stores amid exploding competition from online retailers like Amazon and Casper

2020/06/12
Mattress companies have filed for bankruptcy as they prepare to close up to 700 stores in the United States due to fierce competition from online retailers such as Amazon and Casper.
As more and more customers choose to buy mattresses online, the sales of the largest mattress company in the United States have been declining.
Trust comments instead of testing them in person.
Just days before filing for bankruptcy, online giant Amazon announced it would enter the growing industry. in-a-
Casper, Purple and Tuft & Needle have popularized the box business in recent years.
There are currently about 200 brands offering bedsin-a-
Box options allows customers to easily order mattresses online, try them at home, and return them if they are not satisfied.
Analysts say the financial decline in mattress companies is also partly due to aggressive expansion in recent years, which has led to too many locations being too close, which in turn affects each other\'s sales. The Houston-
The US-based retailer bought Sleepy\'s in 2016 and the mattress giant in 2012.
According to an investor report released on Friday, sales fell 2% last year.
Mattress companies want to be freed from about 700 unfavorable leases by applying for bankruptcy protection and start paying off a lot of debt.
In a press release on Friday, officials announced plans to close 200 poorly performing stores immediately and then decide whether to maintain or close another 500 stores in the coming weeks.
CEO Steve Stana said at the press conference that we will continue to provide customers with unparalleled value to provide the best quality beds at prices that match today, tomorrow and any future budget.
Mattress companies are among the latest in a range of national retailers including Brookstone and West to file for bankruptcy as consumers flock online.
Bankruptcy law expert Daniel Lowenthal told the Daily Mail.
Com: Many retailers are now using bankruptcy liquidation.
The mattress company is different.
After it has closed hundreds of stores, secured new financing and repaid its creditors in full, it will continue to operate.
He continued: \"The past few years have been difficult for mattress companies.
It has too many stores, faces intense industry pressure, and a corporate parent company shocked by the accounting scandal.
But for now, its goal is to get in and out of bankruptcy quickly and regroup with new financing.
Mattress Company has raised $0. 25 billion in bankruptcy financing to keep the doors of the remaining stores open during bankruptcy cases and added $0. 525 billion in financing to fund its withdrawal from Chapter 11
According to the press release, the company hopes to carry out the necessary restructuring and withdraw from bankruptcy in about two months.
Stagner said: \"We intend to use the additional liquidity brought about by these actions to improve our products, provide greater value to our customers, and open new stores in new markets, strategic expansion in the existing market, we see the greatest opportunity to serve our customers. \'Before re-
However, the expansion of the mattress company will have to solve a large amount of debt, including $64.
It owes Simmons Manufacturing $7 million and another $25.
Owe Serta mattress 5 million
Mattress suppliers were listed as the company\'s two largest creditors in bankruptcy applications.
This is a alarm
Appeal to the traditional mattress chain: New York chief executive Bob fibs says the 1960 model is no longer working
Retail Doctor consultants said in an interview with The Washington Post.
Traditional mattress
The buying experience doesn\'t make people feel important.
It made them feel used, he said.
Phibbs explained that the large number of promotions used in the traditional model made it difficult for customers to believe whether they got the best deal, while the new online model was more transparent in pricing.
The reality, he said, is that the mattress company is mature and can accept subversion.
As mattress companies shrink, some competitors who erode the company\'s profits through online sales --
Currently accounts for 15% of all mattress sales
Has begun to expand into entitiesand-
Mortar retail with pop
Or work with established furniture retailers.
Casper Sleep recently announced plans to open 200 stores in the United States as they are also fighting the crowded online mattress market.
Earlier this year, Wal-Mart launched its own online premium mattress brand allready, moving in the opposite direction.
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