Steinhoff's Subsidiary Mattress Firm Files For Bankruptcy

(RTTNews) - Steinhoff International Holdings N.V. said Friday that its subsidiary Mattress Firm, Inc., along with its U.S. subsidiaries, has filed voluntary Chapter 11 cases in the United States Bankruptcy Court for the District of Delaware.

The Mattress Firm Filing implements a pre-packaged plan of reorganisation that provides Mattress Firm access to new financing to support its business and establishes an efficient and orderly process for closing certain underperforming store locations in the United States.

Under the pre-packaged plan, Mattress Firm received a commitment for approximately US$250 million in debtor-in-possession financing with a three-month term to support its ongoing operations during the Chapter 11 proceedings, the pre-packaged restructuring process being expected to complete within the next 45 to 60 days.

The company noted that Mattress Firm also secured a commitment for a four-year term loan of $400 million and an ABL facility of $125 million as exit financing in connection with which the exit lenders will receive 49.9% of the equity in Stripes US Holding, Inc. or Mattress Firm Holdco, Inc. at no cost, with the Group initially retaining a 50.1% equity interest.

Steinhoff said the Mattress Firm Filing does not directly impact the other operating businesses of the Group and is not expected to have any material effect on the trading of these operations.