November 22, 2018 / 5:43 AM / 21 days ago

Steinhoff's U.S. unit Mattress Firm exits bankruptcy, shuts 660 stores

Two Mattress Firm stores, a brand owned by Steinhoff, lie on either side of the street in Encinitas, California, U.S., January 25, 2018. REUTERS/Mike Blake

(Reuters) - Steinhoff International (SNHJ.J) said on Thursday its Mattress Firm Inc unit, the largest U.S. mattress retailer, emerged out of bankruptcy with access to $525 million in exit financing, within two months of filing for Chapter 11 protection.

Mattress Firm also closed about 660 underperforming stores, said Steinhoff, which has been working on a deal to restructure the debt of some units after revealing multi-billion-euro holes in its balance sheet.

The store closures still leave the Houston-based company with about 2,600 stores across the United States.

“Today’s announcement is a further positive step in the wider Steinhoff restructuring process, which continues to make good progress,” Steinhoff acting CEO Danie van der Merwe said.

Mattress Firm, founded in 1986, had filed for voluntary bankruptcy protection in early October, gaining some breathing room to restructure and shore up its finances.

The retail industry has seen a series of bankruptcies, including Toys “R” Us, over the last couple of years on mounting pressure from e-commerce companies like Amazon.com Inc (AMZN.O).

Reporting by Muvija M in Bengaluru; Editing by Gopakumar Warrier

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