Weighed down by slowing sales and an overly aggressive expansion, Mattress Firm filed for Chapter 11 bankruptcy Friday.
The company has suffered from increased competition from online mattress retailers like Casper in recent years and the cost of having over 3,300 brick and mortar locations has further damaged the store’s bottom line. As part of the filing, Mattress Firm plans to close 700 of those stores in the months “leading up to the holiday season.” 200 of those are expected to shut down in the next few days.
Customers worried about the impact on purchases made at Mattress Firm locations can rest easy, though, the company said. All warranties, guarantees, and other customer programs—such as the chain’s one-year “Love Your Mattress” program—will continue to be honored.
Additionally, the company said, all deliveries will be made on schedule.
The company implied it does not expect any disruption of operations. Mattress Firm said all suppliers and contractors will continue to be paid and it has already secured commitments for $525 million in funding that will help it emerge from bankruptcy within the next 45 to 60 days.
Mattress Firm hit the tipping point with brick and mortar stores with its 2015 purchase of Sleepy’s, which added over 1,000 locations. In many cities, there are several Mattress Firm stores within a few blocks of each other—and in some cases directly across the street.