Published : Friday, October 5, 2018 | 7:03 PM
A day after Mattress Firm, Inc. announced it had filed voluntary Chapter 11 restructuring cases in the U.S. Bankruptcy Court in Delaware and plans to close up to 700 stores across the United States, the ultimate fate of its store in the Shops on Lake Avenue is still unknown.
The Pasadena store at 455 South Lake Ave. was not listed in a court filing as being among the first 100 stores which will close.
An employee answering the phone at the store would not comment on whether or not their location was slated for closure.
Mattress Firm, a leading national mattress retailer, announced Friday it was taking action “to strengthen its balance sheet and optimize its store footprint” and filing the Chapter 11 cases to implement a prepackaged plan of reorganization.
The announcement said even after the store closures, Mattress Firm would continue to be the largest specialty mattress retailer in the nation.
“The process we have initiated today will allow us to strengthen our balance sheet and accelerate the optimization of our store portfolio,” Steve Stagner, Mattress Firm Executive Chairman, President and CEO, said.
“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,” said Steve Stagner, Mattress Firm Executive Chairman, President and CEO.
“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 said it has filed motions with the court seeking authority to reject hundreds of store leases.
An initial group of approximately 200 stores are expected to be closed in the next few days, and decisions about additional store closings will be made in the next few weeks, the announcement said. Mattress Firm has over 3,200 stores across the country.
Customers who’ve purchased beds and mattresses from Mattress Firm in Pasadena have been commending the good service they’ve had at the store, leaving favorable comments on Yelp.
“After visiting (two other suppliers), we went to mattress firm to compare prices. We were extremely fortunate to be helped by Nestor – who went above and beyond in earning our business. Nestor is hardworking, professional, honest, and friendly,” one Los Angeles customer wrote.
“They have a good process for helping you decide which bed is best for you. Dean helped us make an informed decision with no pressure,” a South Pasadena customer commented.
Mattress Firm said it will continue to pay employees’ wages and health and welfare benefits, and will continue to honor its customer policies and programs, including warranties, returns or exchanges and promotions.