When Mattress Firm filed for Chapter 11, A&G was engaged to reduce occupancy costs for 2,700 stores with 2,200 landlords in 41 days as part of a prepackaged Chapter 11. We had to swiftly develop a user-friendly system for a 20-person deal team to execute, process, and track hundreds of documents flowing through our system on a weekly basis. Such a project was unprecedented and required a highly efficient and unique approach.
The project required intense attention to process in order for us to effectively negotiate. A&G developed a very sophisticated model in conjunction with Mattress Firm, which included store closings in respective markets, and the impact on sales transfers and online sales. The models were built to avoid store closings, if possible, which was paramount to the company business plan. Our success was due to the strategies implemented, systems created, agility of the deal team, and seamless 24/7 communication with our client.
In total, 1,500 deals were completed in less than 2 months, realizing savings in excess of $300MM. The chain emerged from bankruptcy, and today is thriving.