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About Mattress Firm Holding Corp.

Mattress and bedding retailer Mattress Firm operates or franchises more than 3,000 stores across the US. It is one of the largest mattress retailers in the country, operating primarily through its namesake locations. The company sells conventional and specialty mattresses under a host of brands (Serta, Simmons, Dream Bed, tulo, Sleepy’s), as well as bed frames and accessories. A subsidiary of South African retail group Steinhoff, Mattress Firm is struggling with intense competition, operational troubles, and a bloated real estate portfolio. It filed for Chapter 11 bankruptcy protection in late 2018 and emerged about six weeks later.

Change in Company Type

In 2016 South African retail group Steinhoff, which owns about 12,000 stores under 40+ brand names, purchased Mattress Firm for $3.8 billion. The deal introduced Steinhoff to the US market  and established a subsidiary for the group in what it thought was a stable and growing US retail mattress market. 

Bankruptcy

Mattress Firm filed for Chapter 11 bankruptcy in October 2018 amid competitive pressures and an overextended network of physical stores, among other issues. It emerged from bankruptcy about six weeks later, with access to $525 million in financing and less some 660 underperforming stores. 

Geographic Reach

Houston-based Mattress Firm boasts more than 3,000 stores across the US. Its largest markets include Florida, Illinois, and North Carolina.

Sales and Marketing

Mattress firm sells through its network of stores as well as online. It targets value-conscious consumers. 

Strategy

Mattress Firm is struggling with intense competition, operational troubles, and a bloated real estate portfolio as a result of its quick growth. In addition, its parent company is struggling with its own issues: namely an alleged accounting scandal uncovered in late 2017

The company's primary focus at this point in on optimization of its store portfolio. It has closed about 150 stores and plans to shutter more throughout 2018. It is also working to improve and enhance its e-commerce operations as online mattress upstarts like Casper, Tuft, and Needle are making inroads with Millennials and younger mattress buyers. Heavy discounting by the company has drawn rebuke from competitors and criticized as unsustainable.

Operationally, Mattress Firm has restructured and brought in new management.

Company Background

Mattress Firm was founded in 1986 in Texas when three friends -- Paul Stork, Steve Fendrich, and Harry Roberts -- pooled their resources to buy a downtrodden spot in a Houston strip center. The company filed for and emerged from Chapter 11 bankruptcy in late 2018.

Mattress Firm Holding Corp.

10201 S MAIN S
Houston, TX 77025-5229
Phone: 1 (713) 923-1090

Firm Stats

Employer Type: Publicly Owned
EVP, COO, and Chief Business Officer: Karrie D. Forbes
President and CEO: Kenneth E. Murphy
Chairman: R. Stephen Stagner
Employees (This Location): 120
Employees (All Locations): 10,552

Major Office Locations

Houston, TX