Oct. 5, 2018

Mattress Firm Inc. has filed for Chapter 11 bankruptcy and plans to close hundreds of stores as soon as next week, the company announced today.

“The process we have initiated today will allow us to strengthen our balance sheet and accelerate the optimization of our store portfolio. 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,” president and CEO Steve Stagner said.

“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.”

The company has filed motions with the court seeking authority to reject up to 700 leases. An initial group of approximately 200 stores are expected to be closed in the next few days. Decisions about additional store closings will be made in the next few weeks, the company said.

Mattress Firm has four locations in Sioux Falls that are franchise-owned, according to the company’s website. The ties to South Dakota, however, are even larger.

Its co-founders are from the state. One of them, Harry Roberts, became a franchisee and brought the concept to Sioux Falls in 2013.

Customers with questions about the bankruptcy can find more information here.