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The mattress company (MFRM) has withdrawn plans for an IPO as retailers brace for a possible recession later this year.
The mattress retailer first filed for an IPO in January 2022 and said it did I wanted to raise $100 million, a number that was probably a placeholder and subject to change. The shares were expected to trade on the NYSE under the symbol MFRM.
The IPO would have marked a return to public markets for Mattress Firm, which was taken private by Steinhoff International (OTC:STHHF) in 2016 for $3.8 billion. The retailer filed for bankruptcy in 2018 but came out a month later. Around 700 branches were closed as part of the reorganization.
At the end of September 2021, Mattress Firm still had 2,353 retail stores, according to its IPO filing. The company also sells mattresses and bedding through its e-commerce sites matratzenfirma.com and sleep.com. In addition to reselling mattress manufacturer brands such as Tempur Sealy (TPX) and Serta Simmons (SSB), Mattress Firm also sells products under its own brands, Tulo and Sleepy’s.
Mattress Firm is facing increasing competition from mattress retailers Casper, Purple (PRPL) and Sleep Number (SNBR), as well as online furniture retailers such as Wayfair (W), Amazon (AMZN) and Walmart (WMT). Mattress maker and retailer Casper was taken private by Durational Capital in January last year.
On Tuesday, Wedbush said it sees Mattress Firm as a takeover candidate after the IPO pullback, with Tempur Sealy as a possible bidder.
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