steinhoff\'s mattress firm files for bankruptcy protection, closes stores

JOHANNESBURG (Reuters)-Steinhoff’s (SNHJ. J)
The largest mattress company in the United StatesS.
Mattress retailers have applied for voluntary bankruptcy protection, giving breathing room for restructuring and supporting finance as their South African parent company fights for survival.
After disclosing the debts of several subsidiaries, Steinhoff has been working on restructuring the debts of some subsidiaries with creditors.
There is a gap of one billion euros on its balance sheet.
Mattress company wants to close 700 out of 3,000 bricksand-
Mortar position
Steinhoff said the initial 200 stores will be closed in the coming days.
The retailer said it would continue to serve its customers in stores and online as usual in the process, and also received $0. 775 billion to fund ongoing operations and reimburse restructuring-related
\"Mattress companies have been facing significant operational challenges that management is addressing through their turnaround plans,\" said Danie van de Merwe, acting chief executive of Steinhoff . \".
\"Given the current situation of the group, we believe that capital restructuring of mattress companies is the best way to support and accelerate the turnaround plan.
People familiar with the matter told Reuters on Tuesday that mattress companies were bought by Steinhoff for $3.
8 billion on 2016, it was ready to file for bankruptcy as soon as possible this week.
Steinhoff\'s share price has risen six times, and the company has more than 40 retail brands including Conforama and Poundland. 4 percent to 2.
1530 GMT before 48 Rand.
\"This is expected.
This gives them the opportunity to do some restructuring to finance some of their debt, \"said Greg cazenabogen, Sanlin\'s director of private wealth.
\"The Submission of Chapter 11 documents should give them some respite from creditors.
On July, Steinhoff\'s creditors agreed to hold their debt claims on hold for three years after the company\'s market value fell by 90% and was forced to sell assets to fund working capital.
\"The capital restructuring of mattress companies also represents further positive steps in the broader Steinhoff restructuring process,\" Van de Merwe said . \".
Mattress Company has submitted Chapter 11 documents and has joined more and more United StatesS. brick-and-
In the face of competition for large e-commerce, mortar retailers are struggling financially
Business Companies such as Amazon (AMZN. O).
There are already more than 20 retailers in the United StatesS.
Bankruptcy protection began in early 2017.
The Toy \"R\" Us company was eventually liquidated, and other companies such as children\'s retailer golden baby and unpaid ShoeSource were also reorganized.
The mattress company recently suffered from ineffective brand marketing and high
Terminal Segment
The company is expected to complete the restructuring of the mattress company within 45 to 60 days.
Creditors who provide most of the new financing will hold less than 50% of the restructuring company, and Steinhoff retains a majority stake.
Due to store closure and other operational changes, the company\'s income before interest, tax, depreciation and amortization of the mattress company (EBITDA)
Steinhoff said it is expected to reach $0. 2 billion in the company\'s 2020 fiscal year.
By contrast, EBITDA lost $0. 131 billion in 2018 fiscal year.
Steinhoff added that the filing of the mattress company is not expected to have any material impact on transactions in its other businesses.