Willmar's Mattress Firm to close: Local store one of 200 initially affected by company's bankruptcy
WILLMAR — After only being open for a short while, Willmar's Mattress Firm location on South First Street looks to be closing down in the very near future.
The store is one of 200 Mattress Firms that could be shuttered in the first round of closings following the company's voluntary Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court in Delaware, according to the court documents filed Friday.
In a statement announcing the bankruptcy, Mattress Firm's CEO Steve Stagner said up to 700 stores could be closed in the next few months. The first 200, including Willmar, could be closed within the next few days.
The stores being considered for closing are considered economically inefficient.
"The process we have initiated today will allow us to strengthen our balance sheet and accelerate the optimization of our store portfolio," Stagner said.
Mattress Firm will need the court's approval to reject the leases of the stores it hopes to close.
During the bankruptcy restructuring process, Mattress Firm expects deliveries will be made as scheduled and warranties, guarantees and customer programs will continue to be honored.
Employees' wages and benefits will continue to be paid. Mattress Firm's suppliers and contractors will also be unimpaired by the process, the news release said.
The company estimates the entire restructuring process will take 45 to 60 days.