Just two years after Steinhoff International Holdings NV paid a whopping $3.8 billion to acquire Mattress Firm Inc., its U.S. bedding subsidiary has filed for bankruptcy.
Steinhoff, a South African retailer that is itself struggling for survival after a massive accounting scandal, had already booked more than 1.6 billion euros ($1.9 billion) of impairments in relation to Mattress Firm before Friday’s Chapter 11 filing. Now, Steinhoff will be forced to surrender half of the U.S. store chain’s equity in return for $525 million of financing provided by Steinhoff bondholders. Another goodwill writedown looks likely. . . . more