Mattressman has announced it is to enter a Company Voluntary Agreement (CVA) which will see the closure of 14 of its 25 stores.
The store closures will see 136 jobs cut as the bed retailer looks to “downsize” and begin a “restructuring process”.
Mattressman looked to be in rude health prior to the announcement, having seen £1.1m in 2017 profit grow into £2.6m in the financial year ending 31 March 2018. Its financial woes were blamed on “a slump in sales” and the current retail climate, which have seen a “shock” like for like sales drop of 15% in April and May.
The company said it will continue to trade and said it expects all customer orders to be fulfilled and said in the event they are not customers will receive a refund. Mattressman CEO Andrew Kerry told Retail Sector: “Unfortunately sometimes in business you have to go backwards to go forwards. The CVA will enable us to remodel our business to match the changing retail environment.
“We have always been very successful online and we are going to concentrate on that and smaller stores in East Anglia which have always worked well. All are staff are focused on delivering business as usual and we are optimistic about the future.”
Business rescue and insolvency specialists McTear Williams & Wood have been appointed to assist the company with a CVA proposal which is being put to creditors.