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The once-dominant house items retailer Mattress Tub & Past has filed for chapter safety after months of dropping customers and cash.
The corporate, which additionally owns the BuyBuy Child chain, has struggled to regain its monetary footing after a sequence of turnaround makes an attempt that proved to be mistimed or ineffective.
The retailer says its 360 Mattress Tub & Past shops and 120 BuyBuy Child shops stay open, however will shutter over time. Beginning on Wednesday, April 26, the chain will cease accepting coupons and reductions and gross sales shall be remaining. Present playing cards are anticipated to remain legitimate via Might 8.
“We recognize that our prospects have trusted us via a very powerful milestones of their lives – from going to varsity, to getting married, to settling into a brand new house, to having a child,” the corporate mentioned in an e mail to customers on Sunday. “We have now initiated a course of to wind down operations.”
Since first warning of a chapter in January, Mattress Tub & Past has exhausted quite a few last-ditch efforts to shore up financing, together with retailer closures, job cuts and several other lifelines from banks and traders.
The retailer beforehand cited “decrease buyer visitors and lowered ranges of stock availability” because it flagged “substantial doubt concerning the firm’s capability to proceed as a going concern.” A preliminary report for the holiday-season quarter confirmed gross sales falling 40% to 50% from a 12 months earlier. Gross sales had fallen equally within the quarter earlier than that, down 32%.
Mattress Tub & Past was as soon as a dominant “class killer” that absorbed or outlived many early rivals. As just lately as 2018, the chain had over 1,500 shops. However its web site has lengthy lagged behind its friends.
A number of curler coaster years lastly tipped the retailer into chapter 11.
Throughout the pandemic, the chain missed out on the historic home-goods purchasing increase as a result of it was in the midst of an overhaul that concerned changing large title manufacturers with extra worthwhile non-public manufacturers. The technique exacerbated the industry-wide provide chain disaster, leaving prime merchandise like KitchenAid mixers lacking from Mattress Tub’s cabinets.
Final 12 months, its shares rose and crashed as a meme inventory on the information that activist investor Ryan Cohen invested within the firm. He shook up company management after which cashed out of his wager with a tidy revenue.
Then got here a whole lot of retailer closures, sweeping layoffs and information of the stunning demise of the corporate’s monetary chief. Suppliers hesitated about sending extra stuff to Mattress Tub & Past, nervous they would not receives a commission.
Late final summer time, the corporate had secured financing to propel it via the vacation purchasing season. However lackluster gross sales led to waning enthusiasm from collectors in a trickier financial setting.
In January, the chain defaulted on a few of its loans, prompting these lenders to chop off its credit score. The corporate started putting last-chance offers to remain afloat, promoting extra shares, asking landlords for breaks on lease and even having one other firm pay for its merchandise. In mid-April, its inventory value sank to 24 cents.
Launched within the Nineteen Seventies as a single retailer in New Jersey, Mattress Tub & Past appeared unstoppable even via the Nice Recession because it outlived its predominant rival, Linens ‘n Issues, and later purchased BuyBuy Child, World Market and on-line retailer One Kings Lane.
Consumers flocked to Mattress Tub & Past for a treasure-hunt-like stroll via aisles stacked ground to ceiling with trash cans, kitchen devices, bathe caddies and bedding. Its blue never-expiring 20% off coupon turned such a cultural staple that it is regularly bought on eBay.