The Mattress Giant company is seeking an agreement with creditors to avoid liquidation.
The rest products chain, based in Barcelona, ??filed for bankruptcy in February with a liability of 2.4 million euros. Mandatory closures during the pandemic, the subsequent rise in rental prices and increased production costs led the company to file for bankruptcy.
“Contrary to rumors about the imminent closure of the stores, we are trying to reach an agreement with creditors that allows the owner to continue running the business,” says David Barrio, bankruptcy administrator at the Bauds firm, which has been appointed by the commercial court number 2 of Barcelona.
The creditors are three financial entities, suppliers of mattresses and other rest products. According to Barrio, public administrations are not among the creditors, so reaching an agreement could be somewhat easier.
Since the contest was presented until now, the company has maintained activity in 27 stores that are located in different municipalities in the districts of Barcelona, ??Tarragona and Girona. Currently, the workforce is made up of 38 people but this is a figure that has been reduced since according to the Commercial Registry, the company Evolución del Descanso (which operates the Gigante del mattress brand) employed 58 people in 2021 and 49 workers in 2022. This is explained because in the past, the company had had around 50 stores, all owned and none franchised, a model that continues to characterize it today.
Regarding billing, the company moved between 7 and 8 million euros annually during the years prior to presenting the competition. After the closure of stores, turnover has logically decreased although the bankruptcy administrator assures that open establishments “maintain the level of income.”
Founded in 2018 by Marc Sánchez, owner and sole administrator, the chain is characterized by offering a wide range of mattresses, bases and rest accessories at competitive prices. According to its website, aggressive offers are part of its customer acquisition strategy.