Receives Authorization to Continue Paying Employees, Suppliers and Contractors as Normal
Obtains Interim Approval to Access DIP Financing
Company Will Continue to Provide Customers with the Best Quality Beds at Prices That Fit Any Budget
HOUSTON – October 10, 2018 – Mattress Firm, Inc. (“Mattress Firm” or “the Company”), the nation’s leading specialty mattress retailer, today announced that it has received interim approval from the U.S. Bankruptcy Court in Delaware (the “Court”) for all of its “First Day” motions related to the voluntary prepackaged Chapter 11 restructuring cases it initiated on October 5, 2018. Collectively, the interim approvals will help ensure that Mattress Firm continues normal business operations throughout the financial restructuring process. The Company expects to complete this process within the next 45 to 60 days.
Steve Stagner, Executive Chairman, President and CEO of Mattress Firm, said, “Mattress Firm is open for business and offering customers the best beds at the best prices every day, just as we always have. The Court’s interim approvals of our First Day motions represent the successful first steps in the actions we are taking to strengthen our balance sheet and provide us the resources to improve our product offering, strategically expand into new and existing markets and ultimately, provide greater value to the customers we serve.”
Mr. Stagner continued, “Upon completion of this process, Mattress Firm will remain the largest and most convenient specialty mattress retailer in America, and I’m extremely excited about the opportunities ahead. Importantly, I’d like to thank our talented team for their dedication to our company as we continue working constructively with our suppliers and partners.”
At the hearing, the Court entered an order granting the Company interim authorization to access an initial portion of its $250 million in debtor-in-possession financing, which will be available to support its ongoing operations during the Chapter 11 proceedings. The Company also received authorization to continue paying employee wages and health benefits and to continue to honor its customer policies and programs, including warranties, returns/exchanges and promotions. The Court also provided authorization for Mattress Firm to pay suppliers and contractors in full under normal terms for all goods and services provided prior to and after the filing date. Pursuant to its prepackaged plan of reorganization, the Company expects suppliers and contractors to be unimpaired by this process.
Additional information can be accessed by visiting the Company’s restructuring website at www.mattressfirm.com/restructuring. Court filings and other documents related to the court-supervised process in the U.S. are available on a separate website administered by the Company’s claims agent, Epiq, at http://dm.epiq11.com/MattressFirm. Information is also available by calling 877-214-3592 (toll-free in the U.S.) or 503-520-4465 (for parties outside the U.S.).
A&G Realty Partners is assisting the Company with its store closing and lease restructuring program. Mattress Firm landlords are encouraged to contact A&G Realty Partners through its website, www.agrealtypartners.com.
Sidley Austin LLP is serving as the Company’s legal counsel, AlixPartners LLP is serving as its financial advisor, and Guggenheim Securities, LLC is serving as its restructuring advisor.