Emerges from Chapter 11 with Enhanced Financial Flexibility, Well Positioned for Long-Term Success
HOUSTON – November 21, 2018 – Mattress Firm, Inc. (“Mattress Firm” or “the Company”), the nation’s leading specialty mattress retailer, today announced that it has successfully completed its financial restructuring and emerged from Chapter 11. The Company moves forward with an optimized store footprint of approximately 2,600 stores across the country and $525 million of committed exit financing to support operations and future growth initiatives, including a $125 million revolving credit facility that will be undrawn at closing.
Steve Stagner, Executive Chairman, President and CEO of Mattress Firm, said, “This is an exciting day for Mattress Firm as we emerge a stronger and more competitive company. With an optimized store footprint, stronger balance sheet and significant liquidity, we will be able to more efficiently focus on our strength – delivering the best beds at the best value to millions of customers across the country. We knew that our unprecedented growth had led to duplicative store locations in many of our markets. Now, having completed our operational and financial restructuring, we have the right store locations to not only better serve our customers, but also to fuel future growth. Going forward, we will be intensely-focused on enhancing our product offering, driving disciplined and results-oriented operations and building an integrated and educational shopping experience.”
Mr. Stagner continued, “Our successful emergence from Chapter 11 is a testament to the hard work of our associates. It was their tremendous loyalty, effort and dedication that allowed us to efficiently complete this restructuring process in just 48 days. I am honored to lead this incredible team forward as we continue to provide customers with unmatched value and service.”
Sidley Austin LLP served as the Company’s legal counsel, AlixPartners LLP served as its financial advisor, and Guggenheim Securities, LLC served as its investment banker and restructuring advisor. A&G Realty Partners assisted the Company with its store closing and lease restructuring program. Barclays served as the sole arranger and sole bookrunner of the exit facilities, and Paul Hastings LLP served as counsel to Barclays.