Mattress Firm, Inc., the nation's largest mattress retailer, is filing for Chapter 11 bankruptcy protection and plans to close up to 700 stores around the country.
The Houston-based company filed for Chapter 11 bankruptcy protection Friday in federal court in Delaware.
In a statement to landlords, Mattress Firm said approximately 200 closings will happen in the next few days with the remaining 500 will happen throughout the end of the year. Decisions about which additional stores will close will be made in the coming weeks.
According to court documents, Mattress Firm has more than $1 billion in liabilities and has more than 50,000 creditors. It owes its largest creditor, mattress maker Simmons Manufacturing Co., nearly $65 million.
In a statement, CEO and president Steve Stagner said the bankruptcy filing will allow the company to "strengthen our balance sheet" and close stores in certain markets with "too many locations in close proximity to each other."
The company has more than 3,000 stores in the U.S. and in recent years had been aggressively expanding as it purchased competitors.
Online: Mattress Firm - Restructring