Reorganization bankruptcy options are available for both businesses and individuals to help both when they find themselves struggling. Texas-based Mattress Firm is reportedly filing for bankruptcy protection that will likely lead to restructuring.
The mattress retailer has experienced a couple of tumultuous years since its acquisition by an international conglomerate. The mattress retailer was purchased for $3.8 billion and had grown to be one of the nation's largest mattress chains in the years leading up to it being acquired. It also carried $1 billion in debt at the time it was acquired. The company that acquired the mattress chain noted that it had too many stores in certain markets comprising a total of 3,400 stores nationwide. Store closures are expected as part of the debt reorganization process.
The chain is expected to close underperforming store locations and may open some in other markets. It is expected to secure funding as part of the process to return to profitability and is seeking to improve merchandising, advertising and other parts of its business. The debt reorganization process is part of Chapter 11 bankruptcy protection that struggling companies should be familiar with. This can include securing funding and cutting costs while remaining operational during the reorganization process guided by the bankruptcy court.
Reorganization bankruptcy protections are available to struggling businesses and consumers and it is important for them both to be aware of their options as they endeavor to get back on their feet. Different bankruptcy options may suit different needs and situations and it is important to be aware of all of them.