Bedding Experts sold
Mattress World acquires 58-store Chicagoland chain
By David Perry -- Furniture Today, July 1, 2002
CHICAGO — Homegrown bedding specialist Mattress World has dramatically expanded its presence in the Chicagoland market with the acquisition of the 58-store Bedding Experts chain from Mattress Discounters.
Mattress World, which already operated 26 stores in this market, hopes to rebuild Bedding Experts to the position of prominence it said the chain once enjoyed.
The sale marks Mattress Discounters' exit from Chicago, a market the company admitted had been a challenging one. The move will help Mattress Discounters improve its profitability, officials said.
Mattress World acquired Bedding Experts' stores and a warehouse in the Chicago area. Bedding Experts has annual sales of about $30 million, according to industry sources. Terms of the deal were not disclosed.
Tommie Saylors, president of 14-year-old Mattress World, said he is "very optimistic" about the newly acquired stores. He said Bedding Experts was "a Chicago-land powerhouse" in the late 1980s and early 1990s before the company was sold to Heilig- Meyers in 1998. That sale was for Heilig-Meyers stock that had an estimated value of about $25 million at the time.
Heilig-Meyers had purchased Mattress Discounters in 1997. Bain Capital purchased Mattress Discounters and Bedding Experts in 1999.
Mattress World plans to continue operating the stores under the Bedding Experts name. All Bedding Experts' salespeople, warehouse employees and management personnel will have the opportunity to take positions with Mattress World as part of the sale agreement.
Saylors said the Bedding Experts stores will primarily focus on bedding by Sealy and Stearns & Foster, lines that are strong performers for Mattress World.
Steve Newton, chief executive officer of Mattress Discounters, based in Upper Marlboro, Md., said his company is focusing on expansion in its core markets.
"We are focusing our resources on the development of existing Mattress Discounters markets that demonstrate the strongest growth potential for our brand," he said. "Chicago has been a challenging market for us, largely due to an over-proliferation of mattress stores. Over the past four years, we have made every effort to maintain our market share and improve operational efficiencies through changes in customer service and sales, optimization of our store locations and a focused advertising strategy."
Selling the Bedding Experts chain "makes good strategic sense for our business, allowing us to devote company assets to our core Mattress Discounters brand," Newton added. "Exiting this market is a very positive step for our company and will allow us to streamline our operating base, maximize profitability, and fully concentrate on strategic growth markets that have responded well to our innovative marketing, sales and service efforts."
He said Mattress Discounters still plans to add as many as 30 stores in its current markets this year. Seven are scheduled to open in the next few weeks, he said.
He also said the launch this year of an intensified advertising strategy, combined with the implementation of a new selling and customer service approach, has shown considerable promise. Mattress Discounters is one of the largest mattress retailer in the nation with more than 240 stores.
Mattress World carries Sealy, Stearns & Foster and Restonic bedding in its stores, Saylors said. The Bedding Experts stores will feature extensive Sealy and Stearns & Foster lineups and an expanded Sealy Crown Jewel line, and will also floor some Restonic models. Comfort Source, the Mattress Discounters private-label line, will remain in the stores.
Saylors said the acquisition of Bedding Experts should make Mattress World the largest Sealy dealer in Chicago.
"We've had a great relationship with Sealy for 14 years," he said. "It's my expectation we will continue to have a great relationship."
He said he couldn't say how many of the Bedding Experts stores will remain open. "We will have to assess the leases," Saylors said. Some of the locations are "very prolific," he said.
Saylors and his wife, Catherine, own Mattress World.
RoomStore unit bids for Mattress Discounters
11/26/2008Mattress Discounters files for Chapter 11
09/14/2008Saylors builds two chains in Chicago
09/19/2004Bedding Experts make-a-wish
07/13/2008
