Joele Frank is handling the Chapter 11 filing of Mattress Firm Inc., the country's top bedding retailer, which after an acquisition spree (Sleepy's, Sleep Train), has too many stores that are too close to each other, according to CEO Steve Stagner.
“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,” he said a statement.
About 200 of the targeted stores will shut down during the next week.
The 3,000-member store chain also faces competitive pressure from online retailers (Casper, Leesa) that ship bed-in-a-box mattresses directly to consumers and offer free returns.
Stagner promises that Mattress Firm will continue as the largest bed retailer and operate as in a "business-as-usual" manner during the reorganization.
Founded in 1986, Mattress Firm was acquired by South Africa's Steinhoff International in 2016.
Joele Frank Wilkinson Brimmer Katcher's Michael Freitag, Jed Repko and Aaron Palash handle the Mattress Firm filing.