The Houston-based retailer filed Chapter 11 reorganization bankruptcy in DE on Friday and announced plans for the store closings in a news release.
The company has more than 3,200 stores and more than 9,800 employees in the United States and in recent years had aggressively expanded its retail footprint. The closures will start with around 200 stores over the next few days.
Steinhoff said Mattress Firm had recently suffered from ineffective brand marketing and an insufficient presence in the high-end market segment.
Customers anxious about the impact on purchases made at Mattress Firm locations can rest easy, though, the company said.
"While these acquisitions allowed (Mattress Firm) to achieve ... presence in markets where they previously had little to no presence, they also led to "cannibalization" of sales amongst stores in close proximity to each other", the company said. Last October, Mattress Firm filed a lawsuit against two former in-house real-estate executives, an external broker, and a group of developers, accusing them of conspiring to make Mattress Firm expand, open stores in expensive locations, and sign leases above market rates. It said deliveries will continue to be made as scheduled and that it intends to continue honoring warranties and guarantees.
Mattress Firm will still have more than 2,000 locations left.
"Traditional mattress retailers have been alienating customers for decades and are now buckling under pressure", Philip Krim, the CEO and co-founder of Casper, said in a statement.
Mattress firm has been struggling amid a surge of bed-in-a-box online retailers, too many physical stores and an accounting mess at its parent company, Steinhoff International.
The retailer has also received $650 million to fund ongoing operations and repay debt and costs associated with the restructuring.
Photo of Mattress Firm in downtown Silver Spring by Mike Diegel.