TODAY'S PAPER
57° Good Morning
57° Good Morning
Business

Plainview store in first round of closings as Mattress Firm files bankruptcy

Mattress Firm, a national company that bought

 Mattress Firm, a national company that bought local sleep retailer Sleepy's in 2016, has filed for bankruptcy.  Credit: Sipa USA via AP / Tripplaar Kristoffer

A recently closed Mattress Firm store in Plainview is among about 200 locations in the retailer’s first round of closings as part of its bankruptcy protection filing.

 Houston-based Mattress Firm Inc., the nation's largest mattress retailer, filed for Chapter 11 bankruptcy protection Friday in federal court in Delaware.

Mattress Firm said it plans to close up to 700 stores around the country. The initial 200 all will be closed within the next few days, the company said.

The Plainview store, which is on Mattress Firm's initial list of 200 stores, closed about a month ago in leased space at 1040 Old Country Rd. in Morton Village Plaza, said Kenneth R. Schuckman, president of Schuckman Realty Inc., the Lake Success-based company that is marketing the property.

According to court documents, Mattress Firm has more than $1 billion in liabilities and has more than 50,000 creditors. It owes its largest creditor, mattress maker Simmons Manufacturing Co., nearly $65 million.

In a statement, CEO and president Steve Stagner says the bankruptcy filing will allow the company to "strengthen our balance sheet" and close stores in certain markets with "too many locations in close proximity to each other."

The company has more than 3,000 stores in the United States and in recent years had been aggressively expanding as it purchased competitors.

The 6,525-square-foot, former Mattress Firm store in Plainview was previously a Sleepy's mattress store, which used to be part of a Hicksville-based chain.

Mattress Firm bought HMK Mattress Holdings LLC, the parent company of Sleepy's, for $780 million in 2016.

The Plainview store is the only Long Island location in the initial 200 closings by Mattress Firm. Two Brooklyn locations and a Staten Island store are also on the initial list.

 Sleepy’s had received a series of benefits from state and local government agencies before it was bought, including a $1.5 million grant from Empire State Development to offset costs on its Hicksville headquarters and tax assistance from the Nassau County Industrial Development Agency.

The IDA said that Mattress Firm's bankruptcy filing hasn’t had an impact on the aid agreement.

“They have and continue to keep their job commitments,” said IDA chairman Richard Kessel. "They’re living up to all their commitments to the IDA.”

“We’re going to closely monitor the situation, and if that changes, we may have to get involved," he said.

With AP

Comments

We're revamping our Comments section. Learn more and share your input.

More news