Mattress Firm Wants Rent, Store Reductions In Del. Ch. 11

Law360 (October 10, 2018) Bankrupt retailer Mattress Firm Inc. told a Delaware judge Tuesday that it wants rent concessions from many of its surviving stores, in addition to the ability to quickly close up to 700 locations, during an initial hearing for its more than $3.3 billion Chapter 11 restructuring. Ivan M. Gold of Allen Matkins Leck Gamble Mallory & Natsis LLP, counsel to a group of landlords, told Judge Sontchi his clients were concerned that Mattress Firm is leaving little time for dissent after its disclosure of intended payments for terminated leases until the time of confirmation. “We have no objection to the aggressive timeline proposed by the debtor and their aspiration and ambition in completing the process quickly,” Gold said. “We are concerned, however, by what’s not in the schedule.” Mattress Firm skipped payment of October rents as part of its bankruptcy preparations, reporting in its Chapter 11 disclosure that the business would have run out of cash otherwise.