Submitted by Ann Scott, February 15, 2018

Mattress Firm announced the closure of 200 stores in late 2017. Substituting “local” lease terms into those properties will weaken those properties’ cash flow and potentially leave lenders short on debt service coverage. Collateral value may also suffer, further increasing lender risk. As lenders assess their portfolio position for properties housing retail operations, consideration needs to be given to potential changes in collateral value.

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Contact Ann via email or phone, at 502-479-5291.