Posted by Deana Curis.
Mattress Firm has been known as the largest mattress chain in America for several generations. However, it seems that this time is coming to an end. Traditional means of purchasing mattresses are slowly diminishing as online shopping has become more and more popular. Consequently, Mattress Firm has run into the need to file for Chapter 11 bankruptcy. Mattress Firm claims that they will still have timely deliveries and continue to pay suppliers in full, as Chapter 11 bankruptcy allows for companies to keep businesses active while they pay back creditors. The filing of Chapter 11 bankruptcy will ultimately allow Mattress Firm to try and fix the downfalls in their company that had previously prevented them from success.
Again, the availability of online shopping has caused several companies to file for bankruptcy. Brookstone, Nine West, and now even Sears have needed to file for bankruptcy due to “online culture”. In terms of the mattress industry, online platforms, such as Amazon, have put Mattress Firm and other mattress companies at major risk. However, Mattress Firm faces many more issues that prevent them from prosperity. The existence of multiple locations in close proximity to one another is a large matter in question for the company. Luckily, Chapter 11 bankruptcy is frequently used to “reorganize” a corporation, and this is exactly what Mattress Firm plans to accomplish by filing it as well. For example, the company plans to reorganize by closing down seven hundred locations that are in close proximity to others by the end of this year alone. The company also claims that they will use the money that is saved by closing locations in order to overall improve the brand as a whole.
Universally, it is evident that more and more physical stores will be obligated to shut down due to online trends in today’s society. The mattress industry began to plummet with the closing of Sleepy’s, and is now continuing with the filing of bankruptcy from Mattress Firm. Yet, it is not solely the mattress industry that is being damaged by online shopping, but retail and other corporations as well. It is interesting to think about what this may propose for the future of shopping as a whole, and the amount of companies that may also need to file for bankruptcy as a result.
Deana is marketing major, pre-dental track at the Stillman School of Business, Seton Hall University, Class of 2021.
“’A Wake-up Call for Traditional Mattress Chains’: Mattress Firm Files for Bankruptcy.” The Washington Post, WP Company, 5 Oct. 2018, www.washingtonpost.com/business/2018/10/05/wake-up-call-traditional-mattress-chains-mattress-firm-files-bankruptcy/?noredirect=on&utm_term=.c16972a2522b.