Parent of Mattress Warehouse, Sleep Outfitters Files for Bankruptcy Protection

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Innovative Mattress Solutions, parent of Mattress Warehouse, Sleep Outfitters and Mattress King brands, has joined the long line of retailers filing for Chapter 11 bankruptcy protection, The Wall Street Journal reported.

The company has 142 stores under the three brands in the U.S. Its business is suffering along with the general brick-and-mortar retail market, as well as a hypercompetitive category with a number of ecommerce startups taking share.

Kim Knopf, CEO of Innovative Mattress Solutions, said the company’s stores under the three brands remain open through the filing. She added the company is conducting a review to optimize its retail footprint to “focus on strengthening our performance and right-sizing our operating structure.” 

“Our stores are open for business as usual, and we are focused on taking care of our valued customers,” Knopf told MCM in a statement. “IMS now has the financial support provided under the DIP financing facility. We look forward to emerging from this process as an innovative, customer-focused company positioned for profitable operation.”

IMS is receiving $14 million in bankruptcy financing from its primary supplier, Tempur Sealy, $6 million of which would be available on an interim basis. Tempur Sealy will record a $21 million fourth quarter charge to fully cover sales to IMS, the WSJ reported.

“We believe IMS’s overextended retail footprint and thin capital structure were not designed to effectively respond to the competitive pressures of the recent retail environment,” Tempur Sealy CEO Scott Thompson said in a statement to the WSJ. “We will review strategic alternatives related to IMS during its bankruptcy process with a focus on what is best for Tempur Sealy consumers in the affected markets.”

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