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.
About Mattress Firm
Founded in 1986, Mattress Firm strives to help customers find the beds they want at the price that fits their budget. Today, Mattress Firm has grown to be America’s largest mattress specialty retailer, with neighborhood stores across the country and an obsession for helping people find the right bed. Mattress Firm helps customers’ budget stretch further with a broad selection of mattresses and bedding accessories from leading manufacturers and brand names, including Serta®, Simmons®, tulo™, Sleepy’s®, Purple™ and Chattam & Wells®. Committed to serving its communities, Mattress Firm Foster Kids, a program in partnership with the Ticket to Dream Foundation, hosts six collection drives a year in communities nationwide to ensure that foster children have the resources needed to succeed.
Forward Looking Statements
Certain of the information contained herein is by its nature forward-looking and contains estimates, assumptions and projections that may be materially different from actual future results. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” “project,” “assume,” “seek,” “target,” “future” and similar expressions identify these forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions that ultimately may not prove to be accurate. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur, and actual results or conditions could differ materially from those anticipated in the forward-looking statements. These forward-looking statements speak only as of the date such statements were made or any earlier date indicated, and the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changes in underlying assumptions or otherwise. If the Company were in any particular instance to update or correct a forward-looking statement, investors and others should not conclude that the Company would make additional updates or corrections thereafter.
Contact
Sunni Goodman
SVP of Communications & CX, Mattress Firm
1-713-306-0705
sunni.goodman@mfrm.com
(877) 259-8527