Mattress Firm has filed for chapter 11 bankruptcy protection, according to its parent company, Steinhoff International Holdings N.V. SNH, +5.47% The company is aiming to restructure its balance sheet and debt, while continuing to serve customers at its stores and online, Steinhoff said in a release. The company is aiming to reject up to 700 leases and will close an initial batch of about 200 stores in the next few days. Decisions regarding further store closures will be made in the coming weeks. The company has received a commitment for a debtor-in-possession loan of $250 million, a special loan that is used in bankruptcy proceedings. It has also secured a commitment for a four-year loan of $400 million in exit financing and an asset-backed loan facility of $125 million, underwritten by Steinhoff Europe AG creditors. "Mattress Firm has been facing significant operational challenges which management is addressing through its turnaround plan," said Danie van de Merwe of Steinhoff. Steinhoff shares have fallen 56% in 2018, while the S&P 500 SPX, -2.37% has gained about 9%.