Bedding retail overhaul
One Top 100 chain sold, another in Ch. 11
By Furniture Today Staff -- Furniture Today, October 28, 2002
High Point — Sealy's struggling retail affiliates, Mattress Firm and Mattress Discounters, were overhauled last week in separate transactions aimed at solidifying the finances of the Top 100 chains and distancing Sealy from ownership ties to retailers.
Houston-based Mattress Firm, which operates more than 300 company-owned and franchised stores, was sold to an affiliate of Sun Capital Partners, an investment firm that has stakes in several other home furnishings retailers and manufacturers.
Mattress Discounters filed for Chapter 11 bankruptcy protection after struggling financially for more than a year. Based in Upper Marlboro, Md., it has more than 200 stores, and intends to sell or close all units in California as part of its reorganization.
The retailers are two of Sealy's largest customers and were controlled by Bain Capital, the investment company that also owns a majority of Sealy's stock.
The Sun Capital purchase ends Bain's involvement with Mattress Firm, and Sealy officials said it is likely the Mattress Discounters' reorganization will result in Bain's exit as well.
Mattress Firm had estimated sales of $249.4 million in 2001, while Mattress Discounters reported $242.4 million in sales.
