Mattress Tub & Past is closing 150 extra shops | CNN Enterprise

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CNN
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Mattress Tub & Past is closing 150 extra shops — only a week after the struggling retailer introduced the closure of 87 areas.

The corporate’s brick-and-mortar footprint has already shrunk dramatically, a regulatory submitting confirmed late Monday, and the brand new closings imply it can have shuttered 400 shops up to now yr — virtually half the 950 or so shops it had open in February 2022.

That features final week’s announcement that it was additionally closing all 49 remaining Harmon Face Worth shops, which offered cosmetics; plus 5 buybuy Child areas. A listing of the brand new retailer closures wasn’t instantly out there.

A turnaround doesn’t look imminent: The embattled dwelling items chain forecasts first quarter gross sales to be down by 30% to 40% with “sequential, quarterly gross sales enchancment thereafter” the submitting mentioned.

The corporate additionally mentioned Monday it was planning to boost some $1 billion by means of an providing of most popular inventory and warrants in a last-ditch effort to stave off chapter. If it will probably’t full the advanced transaction, it might “possible file for chapter safety.” It additionally appointed Holly Etlin, a chapter skilled, as interim chief monetary officer.

The chain has mentioned in latest weeks that it had defaulted on a mortgage and should not be capable of stay in enterprise, elevating considerations about its future. Mattress Tub & Past held talks in latest days with an funding agency to underwrite a good portion of the proposed providing, based on Reuters.

Mattress Tub and Past has been a part of the meme inventory phenomenon, with shares skyrocketing as a lot as 400% final yr when activist investor and GameStop chairman Ryan Cohen took a stake and sought adjustments.

Shares of the retailer, which closed up 92% at $5.86 in a rollercoaster session Monday, have been down 40% in in pre-market buying and selling Tuesday.

Based in 1971, Mattress Tub & Past grew to become a staple for reasonably priced dwelling decor, kitchenware and faculty dorm room furnishings. It’s additionally recognized for its ubiquitous 20% off blue coupons, and cavernous shops with merchandise stacked excessive to the ceilings.

However the firm struggled to make the transition to on-line purchasing and fend off bigger chains comparable to Walmart and Goal

(TGT). Many consumers switched to these opponents because the novelty of Mattress Tub & Past’s coupons light.

The corporate was additionally hit laborious through the pandemic, closing shops briefly throughout 2020 whereas rivals remained open. The corporate misplaced 17% of its gross sales in 2020 and 14% in 2021.

– Reuters contributed to this report