LOS ANGELES (CBS News) – Mattress Firm filed for bankruptcy on Friday, with the bed retailer saying it plans to close hundreds of stores.
The country’s largest mattress chain, which has 3,400 locations nationwide, will shutter 200 stores over the next few weeks and as many as 700 by year-end, according to its Chapter 11 filing seeking bankruptcy protection. The company plans to continue operating and paying its suppliers.
Of those 200, six are in California, according to USA Today. The only store immediately closing in the Southland is located at 9095 Central Ave. in Montclair. Two other stores will be closed in San Marcos and Murrieta.
“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,” Steve Stagner, the company’s CEO, said in a statement.
Mattress Firm is the most recent in a series of bankruptcies by national retailers as consumers chose to purchase goods online.
The company’s filing comes only days after Amazon said it would delve into the online “bed-in-a-box” business. Walmart also entered the fray earlier this year with its own online premium mattress brand, Allswell.
Founded in 1986, Mattress Firm bought competitor Sleepy’s for $780 million in 2015.
The company’s difficulties include an accounting scandal at its parent company, Steinhoff International, and losing a large contract with Tempur Sealy International last year.
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