Mattress Firm Review

Mattress Firm is a major American retail bedding company that specializes in the sale of mattresses, bed frames, bedding, and other sleep-related products. The company has a rich history that dates back to its founding in 1986. Here’s a brief overview of the history of Mattress Firm:

1. Founding and early years (1986-2000): Mattress Firm was founded by Harry Roberts, Steve Fendrich, and Paul Stork in Houston, Texas, in 1986. The trio aimed to provide customers with a wide selection of high-quality mattresses at competitive prices, with a focus on excellent customer service. The company grew rapidly, expanding throughout Texas and the South Central United States. By the late 1990s, Mattress Firm had established itself as a major player in the retail bedding industry.

2. Expansion and growth (2000-2012): In the early 2000s, Mattress Firm continued its expansion, entering new markets such as the Midwest and Southeast United States. The company embraced a strategy of aggressive growth, primarily through the acquisition of other mattress retailers. Some of the most notable acquisitions during this period include Mattress Pro, Sleep Experts, and Mattress Giant. By 2012, Mattress Firm operated more than 1,000 stores in 28 states, making it one of the largest specialty bedding retailers in the United States.

3. Initial public offering (2011): On November 18, 2011, Mattress Firm went public, listing its shares on the NASDAQ stock exchange under the ticker symbol MFRM. The initial public offering (IPO) raised $105 million, and the company’s stock price climbed steadily during its first few years as a public company.

4. Acquisition of Sleepy’s (2015): In 2015, Mattress Firm acquired its largest competitor, Sleepy’s, for $780 million. Sleepy’s was the second-largest specialty mattress retailer in the United States at the time, with over 1,000 stores primarily located in the Northeast and Mid-Atlantic regions. The acquisition significantly increased Mattress Firm’s market share and store count, making it the largest specialty mattress retailer in the country.

5. Acquisition by Steinhoff International (2016): In August 2016, South African retail conglomerate Steinhoff International announced its plans to acquire Mattress Firm for $3.8 billion, including debt. The deal was completed in September 2016, and Mattress Firm became a subsidiary of Steinhoff. This acquisition marked a major milestone in Mattress Firm’s history, giving it access to greater resources and an international presence.

6. Bankruptcy and restructuring (2018-2019): In October 2018, Mattress Firm filed for Chapter 11 bankruptcy protection, citing an overexpansion that led to a surplus of underperforming stores. The company closed around 700 stores as part of its restructuring plan. Mattress Firm successfully emerged from bankruptcy in November 2018, with a leaner store footprint and a renewed focus on optimizing its operations.

7. Recent developments (2019-present): Since emerging from bankruptcy, Mattress Firm has continued to evolve and adapt to the changing retail landscape. The company has embraced e-commerce and omnichannel retail strategies, while also working to improve its in-store customer experience. Mattress Firm remains a major player in the retail bedding industry, with a nationwide presence and a commitment to providing quality sleep products and customer service.

Throughout its history, Mattress Firm has weathered numerous challenges and capitalized on opportunities to grow and expand. The company’s ability to adapt and innovate has allowed it to maintain its position as a leading specialty mattress retailer in the United States.