Mattress Firm is purchased by Steinhoff International
The latest news is that an international holding company has purchased Mattress Firm. (Effective August 2016 and to close November 2016).
It seems that the Wall Street companies (for some reason) like the mattress business.
Advent International acquired all the family owned major brand mattresses (Sealy, Serta, Tempurpedic, Simmons and Sterns Foster) (Those were the big manufacturers.
Now, the big retailer who was previously family owned has sold out to another big investment company.
I believe that Mattress Firm was not making a profit on their mattresses. They were making money on their stock. Their business model of pricing average quality mattresses high along with high overhead created a failure when it comes to making a profit selling mattresses.
Meanwhile the Advent International brands business model is “Build it cheap / Sell it high”. They are making a profit whenever some uninformed mattress shopper purchases their brand. However their success lies greatly on mass advertising. (For some reason many mattress shoppers think that out of the 500 different mattress brands, the 5 that are advertised are the only ones that are good).
However, due to online information and a more informed consumer, that business model is soon doomed for failure.
My prediction has been and is now that Mattress Firm will soon be bankrupt. They have real solid competition. It’s just a matter of time before all the advertising does not create sales and I believe that time is near.