Three Mattress Firm stores in Wichita are among 700 the retailer is looking to close as part of a reorganization bankruptcy it filed on Friday.
The Houston-based retailer filed Chapter 11 reorganization bankruptcy in Delaware on Friday and announced plans for the store closings in a news release.
“The process we have initiated today will allow us to strengthen our balance sheet and accelerate the optimization of our store portfolio,” Mattress Firm CEO Steve Stagner said in the release.
According to separate documents filed with the bankruptcy court Friday, three Wichita stores are among those to be closed as early as Oct. 31: 438 S. Rock, 6836 W. Kellogg and 11747 E. Kellogg. The company has seven stores in Wichita and Derby and one in Hutchinson.
“Leading up to the holiday season, we will exit up to 700 stores in certain markets where we have too many locations in close proximity to each other,” Stagner said.
The company said in documents the store closings are expected to cost about $97 million.
Mattress Firm blamed the effect of “execution . . . of long-term strategic initiatives” on “challenged” financial results in fiscal years 2017 and 2018, in documents. Specifically it attributed accelerated rebranding of more than 1,300 non-Mattress Firm branded stores, a change in key suppliers and ineffective brand marketing for a July 31 balance sheet listing total assets of $3.35 billion and liabilities of $4.39 billion.
The company said in the release it will continue to operate through the bankruptcy after receiving commitments for debtor-in-possession financing of $250 million and commitments for $525 million of senior, secured credit facilities.
It said it expects the bankruptcy process to last 45 to 60 days.
The mattress retailer at one time had as many as 13 stores in Wichita and Hutchinson.