Mattress Firm quietly closed two additional stores as the company works to slim down its store roster and get out from under store leases.
The company shuttered stores in Delmar and Bear without out the typical going out of business fanfare in another wave of cuts. Earlier, the company had not listed any Delaware stores in its first closing list.
The massive chain filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Wilmington after a wave of expansion led to an overabundance of stores.
Bisnow, a website that covers the commercial real estate industry, says the company issued an ultimatum to landlords that demanded lower rents.
The filing has sent shock waves as owners of strip centers cope with the filing. Chapter 11s typically offer companies the opportunity to modify or walk away from leases.
It is clear that oversaturation was an issue. For example, the Bear store was a short walk from another Mattress Firm location on Route 40. The store also sat across the highway from a competing chain.
Mattress stores have targeted Delaware due to the lack of a sales tax. However, the multitude of locations and competition from online companies that can ship mattresses in a box sent to homes put pressure on margins.
Mattress Firm is part of a South African company.
(See link to earlier story below)
No Delaware stores listed in first wave of Mattress Firm closings
