With its Chapter 11 filing, Mattress Firm joins a growing list of US brick-and-mortar retailers struggling financially in the face of competition from large e-commerce firms such as Amazon (AMZN.O). Mattress Firm locations in Ballwin and Richmond Heights also will close.
The company's two Garden City stores are almost across the street from each other, just south of the corner of State and Glenwood streets. The bankruptcy will allow the company to access new financing and to close stores that aren't making enough money, according to a statement on the company's website.
"Considering the group's current position, we believe the Mattress Firm recapitalization is the best way to support and accelerate the turnaround plan".
FILE -Mattresses are offered for sale at a Mattress Firm store on December 6, 2017 in Chicago, Illinois.
Mattress Firm has filed for Chapter 11 bankruptcy protection and will close up to 700 stores, the Houston-based chain announced Friday.
According to court documents, Mattress Firm has more than $1 billion in liabilities and has more than 50,000 creditors.
The retailer ballooned in size in recent years through a series of acquisitions - Mattress Giant in 2012, Sleep Train in 2014 and Sleepy's in 2016.
The news comes just months after a wild conspiracy theory accusing Mattress Firm of being a money-laundering operation went viral online.
Steinhoff said Mattress Firm had recently suffered from ineffective brand marketing and an insufficient presence in the high-end market segment.
Krim estimated that about 10 to 12 percent of mattress sales are online.
In Boise, Mattress Firm has four stores near the Boise Towne Square mall.
Mattress Firm will still have more than 2,000 locations left.
Some of the chain's locations basically compete with one another with multiple stores in a small geographic area.
There may be more to its rapid expansion than meets the eye, however. Two other stores will be closed in San Marcos and Murrieta. It described the arrangement as a "nationwide bribery, kickback, and fraud scheme". At the time, analysts expected that many more would follow.