Mattress Firm Joins Other Retail Companies Who Have Filed Chapter 11 Bankruptcy
Mattress Firm filed for Chapter 11 bankruptcy. The largest mattress retailer in the country plans for its company to close almost 700 of its stores. As it plans to restructure, Mattress Firm is operating 3,500 stores, but will close 200 locations immediately.
In order to alleviate financial issues, Mattress firm would like to get out of some leases as part of its business restructure plan. The closures of Mattress Firm stores adds to the number of almost a dozen other retail companies that have had to file for bankruptcy so far this year. According to a recent report by a real-estate research firm, mall vacancy rates are at 9.1 percent, the highest in seven years.
Businesses joining Mattress Firm in filing bankruptcy include National Stores, Nine West, The WAlking Comapany, Gumps, Rockport, Brookstone, Bon-Ton Stores, Claire’s, Kiko USA, and A’gaci. A discount retailer with many shopping center locations, National Stores filed Chapter 11 after a difficult retail environment caused financial problems. After filing Chapter 11, Brookstone plans to close 101 locations in shopping malls. Well-known in the shoe industry, Rockport, whose brand sold in more than 60 countries, also filed Chapter 11 bankruptcy protection. Another footwear company, Nine West, plans on closing all 70 stores and selling some of its brands. Based in malls across the country, Claire’s debt issues resulted in a Chapter 11 bankruptcy filing. The Walking company, for the second time in ten years, filed Chapter 11. Retail stores owned by Bon-Ton include Younkers, Elder-Beerman, and Carson’s. The company was forced into liquidation. Kiko USA plans on restructuring its business through a Chapter 11 bankruptcy by closing most of its stores. A’gaci, a women’s apparel retail store, will close 20 of its 75 stores after filing Chapter 11.