Mattress Firm, the nation’s largest specialty mattress retailer, is entering Chapter 11 bankruptcy and plans to close five stores in the Austin area, including one in Cedar Park, one in Round Rock and one on Research Blvd. in northwest Austin.
The Houston-based firm filed for bankruptcy protection Oct. 5 after several years of rapid growth that left the company with $3.2 billion of debt.
As a part of the announcement, the company — which has 3,500 company-operated and franchised stores in 49 states — said it recognized that it now operates too many stores following a series of recent acquisitions.
The company said it is preparing to complete a restructuring within 45 to 60 days, and said it has a arrangement of $525 million in senior secured credit to fund its turnaround.
Bankruptcy proceedings will allow Mattress Firm to exit hundreds of store leases in other locations falling short of their goals. The company stated that it could close up to 700 of its 3,500 stores nationwide, using the cost savings to upgrade its product offering, open stores in new markets and grow in its existing markets.
The first group of 200 stores are expected to be closed in the next few days. Decisions about additional store closures will be made in the coming weeks. Mattress Firm has more than 30 stores in the Austin metro area, according to the company’s website, but will close just five of those:
- 3200 W. Anderson Ln, Ste 101, Austin, TX 78757 - 1010
- 9705 Research Blvd Suite A, Austin, TX 78759
- 13000 N FM 620 RD SB, Cedar Park, TX 78613
- 115 Sundance Pkwy, Ste 520, Round Rock, TX 78681
- 1810 FM 685 #200, Pflugerville, TX 78660
A total of 35 Mattress Firm stores in Texas will close in the immediate future.
In Sept. 2016, the company was acquired by Steinhoff International for $3.8 billion, and Mattress Firm now operates as a subsidiary of Steinhoff.
"We will continue to provide unmatched value to our customers by offering the best quality beds at prices that fit any budget today, tomorrow and into the future," Mattress Firm CEO Steve Stagner said in an issued statement.