If you’re looking for a brand new mattress, you’re gonna have one less place to look.
Mattress Firm announced it has gone bankrupt and will be closing a bunch of its stores really soon.
Here’s what you need to know:
1. The largest mattress retailer has gone bankrupt.
Mattress Firm was already fighting to stay competitive in the crowded mattress market, but the rise of mattress-in-a-box companies like Caspar and Tuft & Needle — who offer free trials, free delivery and easy ordering — made things worse.
Mattress Firm filed for Chapter 11 bankruptcy Oct. 5.
2. Up to 700 locations will close by the end of 2018.
About 200 of those will close in the coming weeks. By the end of the year, about 21% of their current stores will be closed. The CEO said those closing will be in areas where there are multiple locations near each other.
3. They went from big growth and profits to losing money — really fast.
The closures come after six years of massive growth.
Mattress Firm acquired a number of other bed-selling chains, including Mattress Giant (2012), Sleep Train (2014) and Sleepy’s (2016).
In 2017, Mattress Firm banked a $251 million profit; this year, they’ll lose $150 million.
4. You’re not going to find liquidation sales.
Mattress Firm isn’t planning to do that. Instead, they’ll send their stock from the closing stores to the 2,600 or so remaining stores, warehouses or distribution centers.