Mattress Firm Joins Other Companies Who Have Filed Chapter 11 Bankruptcy in 2018
The largest mattress retailer in the country, Mattress Firm, filed for Chapter 11 bankruptcy. The plan for the company is to close around 700 of its stores. Currently operating 3,500 Mattress Firm stores, 200 will close immediately, as it plans to restructure.
As part of the business restructure plan, Mattress Firm would like to get out of some leases. The announcement of Mattress Firm closures accounts for almost a dozen retail companies that have filed for bankruptcy this year so far. According to a real-estate research firm, a recently-released report states that mall vacancy rates are at 9.1 percent. This is the highest level in seven years.
Joining Mattress Firm in filing bankruptcy include National Stores, Gumps, Brookstone, Rockport, Nine West, Claire’s, The Walking Company, Bon-Ton Stores, Kiko USA, and A’gaci, National Stores is a discount retailer with many locations in shopping centers. Gumps filed for Chapter 11 bankruptcy after citing financial problems due to a difficult retail environment. Brookstone plans to shut 101 locations in shopping malls due to filing Chapter 11. Rockport, well-known in the shoe industry with its brand sold in more than 60 countries, filed Chapter 11. Nine West, also a footwear company, plans on closing all 70 retail stores and sell some of its brands. Claire’s accessories chain based in malls across the country, struggled with debt and filed for Chapter 11. The Walking Company filed Chapter 11 for the second time in 10 years. Bon-Ton department store chain, was forced into liquidation. Retail stores owned by Bon-Ton include Younkers, Elder-Beerman, and Carson’s. Kiko USA filed a Chapter 11 bankruptcy and plans on restructuring its business by closing most of its stores. A’gaci is a women’s apparel retailer. The company, after filing Chapter 11, intends on keeping 55 of its 75 stores open.