Ken Mazda-led group to acquire 1800mattress.com
Will inject money into bedding retailer
Larry Thomas -- Furniture Today, March 13, 2009
See an updated version of this story here.
LONG ISLAND CITY, N.Y. — Mattress retailer 1800mattress.com said it has signed a letter of intent to sell the company to an investor group led by mattress industry veteran Ken Mazda.
 Ken Mazda |
Under terms of the agreement, both parties have pledged to complete the due diligence process swiftly, after which the new owners will inject an undisclosed amount of money into the company to continue to grow the brand.
The company said Mazda assumed responsibility for day-to-day operations when the letter of intent was signed. He will become CEO upon closing.
Napoleon Barragan, who founded the company more than 30 years ago, will be a consultant and advisor to the new company and will focus on international business development.
"1800mattress.com is one of the nation's best known brands, and we believe the only truly iconic brand in the mattress industry," Mazda said.
The purchase price was not disclosed.
Founded in 1976 as Dial-A-Mattress, the company pioneered the concept of selling mattresses over the phone. It blanketed the New York region with advertising containing its now-famous toll-free number and the slogan, "Leave off the last ‘s' for savings."
The retailer later franchised the concept and also branched out to pursue Internet retailing and traditional retail showrooms.
1800mattress now has about 40 brick-and-mortar stores - mostly in the New York market - in addition to its telephone and Internet businesses.
The company features mattresses from Sealy, Serta, Simmons, Tempur-Pedic and King Koil, and also carries products such as futons, adjustable beds and Murphy beds.
"Personally, I am very excited about this opportunity for our customers, employees and vendors," said Barragan. "The experience the new investment group brings from both the manufacturing and retail perspective will make the company and our brand stronger in the future."
Mazda is best known for building Nationwide Discount Sleep Centers in to a 60-store retail powerhouse in the Philadelphia market in the 1980s and 1990s. He and his partners sold the chain to Mattress Giant in 1999. Mazda joined the management team of 1800mattress.com last summer.
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1800mattress in flux
Mar 23, 2009
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