Mattress Firm Inc. announced on Friday that one store in Bristol and one in Newington are part of the 209 confirmed stores that will be closing after the company filed Bankruptcy to strengthen and optimize the store footprint through a court-supervised prepackaged financial restructuration process.
“It’s sad that another business is closing, it’s always unfortunate to see a business close in town,” Newington Chamber of Commerce Executive Director Gail Whitney, said.
Newington has three Mattress Firm stores, all located on Berlin Turnpike. The location that will discontinue its operations is located at 3475 Berlin Turnpike.
A total of six Connecticut Mattress Firm stores will be closing in the towns of Orange, Tolland, Branford, Wethersfield, Bristol and Newington.
Mattress Firm stated on a written statement that its plan of reorganization will provide the retail company access to new financing to strengthen the business. The plan is also expected to establish an efficient process for the closing of economically inefficient locations and it will provide for all trade creditors to continue to be paid for the services provided.
“The process we have initiated today will allow us to strengthen our balance sheet and accelerate the optimization of our store portfolio,” Steve Stagner, executive chairman, president and chief executive officer of Mattress Firm, said. “Leading up to the holiday shopping season, we will exit up to 700 stores in certain markets where we have too many locations in close proximity to each other. We intend to use the additional liquidity from these actions to improve our product offering, provide greater value to our customers, open new stores in new markets, and strategically expand in existing markets where we see the greatest opportunities to serve our customers.”
Mattress Firm anticipates that deliveries will not be delayed and it is looking forward to continue to honor customer programs such as warranties and guaranties. Customers can continue to shop mattresses and bedding accessories in the Mattress Firm locations that will remain open and on the store website.
The written statement stated that Mattress Firm received commitments for about $250 million in debtor-in-possession financing, which, subject to Court approval, will be available to help its continuing operations during the Chapter 11 Bankruptcy Court proceedings. In addition, Mattress Firm obtained commitments for $525 million of senior secured credit facilities enabling it to emerge from Chapter 11 and support operations thereafter. The company will continue to work through the process over the next 45 to 60 days. They will also announce additional store closings through that period of time.
“We thank our suppliers and partners for their continued support, as well as the contractors we partner with to make deliveries across our markets, all of whom will continue to be paid in full in the normal course for products and services provided,” Stagner said. “We also thank our team members for their continued commitment and dedication to serving our customers.”
For more information visit Mattress Firm’s restructuring website at www.mattressfirm.com/restructuring .
Karla Santos can be reached at 860-801-5079 or firstname.lastname@example.org.