Nationwide mattress retailer Mattress Firm recently filed for Chapter 11 bankruptcy. The filing comes amidst dwindling profits and increased competition from online start-up companies like Casper, Leesa, Saavta and Nectar. As part of the bankruptcy restructuring, the company plans to close 700 non-profitable stores across the country, focusing first in on those in close proximity to one another. So far, no stores in New Mexico are slated for closure, but that could change as the bankruptcy moves forward.
On October 15, after more than 130 years in business, former retail giant Sears filed for Chapter 11 bankruptcy protection in the face of mounting debt and shrinking profits. In a post earlier this month, we discussed now-former CEO Eddie Lampert’s plan of leveraging his hedge fund, ESL Investments, and other resources to raise capital and avoid a filing. In spite of those efforts, however, the highly anticipated filing occurred.
Westmoreland Coal Co., one of the oldest coal companies in America, filed for Chapter 11 bankruptcy this week to deal with mounting debt payments and a worldwide drop in demand. Westmoreland reportedly has $1.4 billion in debt (compared to $770 million in registered assets).
Thousands of workers laid off when toy retailer Toys R Us filed for Chapter 11 bankruptcy might soon be receiving severance payments. The multimillion-dollar severance package, funded by two of the three equity firms that purchased the company in a 2005 leveraged buyout, could provide relief for workers struggling since the company closed all 850 stores back in June.
The U.S. Trustee's office announced this week that they have major concerns about the viability of the Chapter 11 bankruptcy plan for Toys R Us (and subsidiary Geoffrey Holdings LLC) due to the fact that the current arrangement fails to adequately compensate vendors and other creditors. The bankruptcy watchdog office filed an official objection due to the so-called "death trap" provision currently written into the plan, which only allows creditors to collect from a $180 million fund if they agree to sign third-party releases.
New Mexico business owners may relate to a high-end furniture company's current financial situation, especially those who have known their shares of ups and downs where costs and profits are concerned. It's the mother company for several well-known furniture brands. Due to circumstances the company believes are likely to get worse instead of better, owners have decided to work through a Chapter 11 bankruptcy to obtain debt relief while, at the same time, keeping its doors open for business.
The Albuquerque Journal recently covered the bankruptcy filing of Zio's Italian Kitchen. Zio's announced that its Albuquerque restaurant will be closing in conjunction with its recent Chapter 11 bankruptcy filing, which occurred less than a month ago.
Although not a firm fixture and long-tenured business enterprise across the entire country, Hasting Entertainment Inc. is certainly a well-known commodity in many states, including in New Mexico, where its retail stores selling music, movies, video games and additional merchandise operate in many locales.