Mattress Tub & Past’s Manhattan flagship retailer reopened in July 2021 after intensive reworking. Picture credit score: Mattress Tub & Past
The chapter submitting introduced by Mattress Tub & Past on Sunday may outcome within the shutdown of the 52-year-old residence items chain, however different retailers could discover alternative to increase into vacated shops.
At situation is the way forward for 520 shops within the retailer’s nationwide portfolio, together with 360 Mattress Tub & Past shops and 120 buybuy Child areas. In its assertion in regards to the Chapter 11 submitting, the corporate indicated that it’ll pursue a twin technique. The corporate has secured $240 million in debtor-in-possession financing to keep up operations as the corporate prepares to close down, however no retailer closing schedule was introduced.
On the identical time, the agency is requesting court docket permission to promote its property, in complete or partially. Ought to a sale achieve success, the corporate will “pivot away” from retailer closings as wanted, in response to the assertion.
Potential takers
Ought to the chapter submitting result in widespread closings, the vacated shops could discover appreciable curiosity from new tenants. A number of nationwide chains have already taken former Mattress Tub & Past areas. On March 30, TJ Maxx opened a retailer at Watertown Towne Plaza in Watertown, N.Y. This summer time, a Ross Gown for Much less is predicted to open in a former Mattress Tub & Past location in White Lake Township, in response to a February report by WXYZ, a Detroit affiliate of ABC.
Sunday’s announcement follows Mattress Tub & Past’s prolonged effort to stabilize its funds and stave off chapter. Over the previous a number of years, the corporate has steadily diminished its retailer footprint. Final August, the retailer disclosed plans to shut 150 shops, as a part of a method that additionally included reducing its workforce 20 p.c, lowering capital spending and securing $500 million in new financing.
The corporate has additionally invested in upgrading its product with a $250 million effort to rework 450 areas. One high-profile instance was the corporate’s 92,000-square-foot Manhattan flagship, which reopened in July 2021 after intensive renovations.
Sue Gove, Mattress Tub & Past’s president & CEO, mentioned on March 30 that the corporate had raised $360 million in fairness for the reason that starting of February, cured its default beneath its credit score settlement and reached different objectives. However gross sales have been problematic in 2022, declining 31 p.c year-over-year within the third quarter of 2022, essentially the most outcome figures accessible.
