Steinhoff’s U.S. unit Mattress Agency exits chapter, shuts 660 shops

Two Mattress Agency shops, a model owned by Steinhoff, lie on both facet of the road in Encinitas, California, U.S., January 25, 2018. REUTERS/Mike Blake

(Reuters) – Steinhoff Worldwide (SNHJ.J) mentioned on Thursday its Mattress Agency Inc unit, the biggest U.S. mattress retailer, emerged out of chapter with entry to $525 million in exit financing, inside two months of submitting for Chapter 11 safety.

Mattress Agency additionally closed about 660 underperforming shops, mentioned Steinhoff, which has been engaged on a deal to restructure the debt of some models after revealing multi-billion-euro holes in its steadiness sheet.

The shop closures nonetheless go away the Houston-based firm with about 2,600 shops throughout the US.

“Right this moment’s announcement is an additional optimistic step within the wider Steinhoff restructuring course of, which continues to make good progress,” Steinhoff appearing CEO Danie van der Merwe mentioned.

Mattress Agency, based in 1986, had filed for voluntary chapter safety in early October, gaining some respiratory room to restructure and shore up its funds.

The retail trade has seen a collection of bankruptcies, together with Toys “R” Us, during the last couple of years on mounting strain from e-commerce firms like Inc (AMZN.O).

Reporting by Muvija M in Bengaluru; Modifying by Gopakumar Warrier

Author: Maxwell C.

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