Steinhoff's Mattress Firm now leaner, with $525m cash pile
New financial position comes after the company voluntarily filed for bankruptcy seven months ago
Seven weeks after filing for voluntary bankruptcy, Steinhoff’s cash-strapped US bedding subsidiary Mattress Firm has emerged with access to $525m funding and 660 fewer stores. Outgoing Steinhoff CEO Danie van der Merwe said on Thursday “this short process has enabled Mattress Firm to strengthen its balance sheet and optimise its store footprint, and it emerges as a stronger and more competitive company.” Van der Merwe, who earlier this week announced he would be stepping down from the CEO position at the end of November , said the latest development was a further positive step in the wider Steinhoff restructuring “which continues to make good progress”. In October Steinhoff announced that the Mattress Firm restructuring would also involve the sale of 49.9% of the business to its founders, who were providing the $525m new funding. Steinhoff is hoping that the liquidity boost from the sale and the release from hundreds of unattractive leases will help it to deal with a more competitiv...
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