A newly closed Mattress Firm store in Oceanside is among 99 locations in the retailer’s second round of closures as part of its bankruptcy protection filing.
The 4,000-square-foot store, which was once a Sleepy's — the Hicksville-based mattress retail chain was acquired for $780 million by Mattress Firm two years ago — was located on 3150 Long Beach Rd. The property is owned by United Properties Corp. in East Meadows.
A public relations representative for Mattress Firm, when contacted about the closing of the Oceanside store, didn't provide updated information.
Houston-based Mattress Firm filed for Chapter 11 bankruptcy protection in federal court in Delaware on Sept. 28, citing market saturation and competition from online mattress retailers, among other factors.
At the time, Mattress Firm said it planned to close up to 700 stores around the country.
A 6,525-square-foot Mattress Firm store in Plainview, located at 1040 Old Country Rd. in Morton Village Plaza, closed in early September.
Patrick Collins, a partner at Uniondale law firm Farrell Fritz, who specializes in bankruptcy and restructuring, said that in a changing retail landscape competition from the "Amazon effect" and other retailers continues to hurt many businesses.
In recent years Mattress Firm aggressively purchased competitors, expanding to more than 3,000 stores. The company has more than $1 billion in liabilities and a long list of creditors, according to court documents. It owes its largest creditor, mattress maker Simmons Manufacturing Co., close to $65 million.
Even so, Mattress Firm could emerge from bankruptcy as a stronger company, Collins said.
"The plan Mattress Firm has in place is smart in that it lets the company retain ownership, leverage the provision of the bankruptcy code that limits landlord rejection damage claims, and allows it to negotiate or terminate leases in oversaturated areas," he said.
"This means the company has an opportunity to 'right size' and reorganize their business without shutting down completely."