Mattress Firm hopes to raise $115 million in IPO
Will use funds to retire high-interest debt
Retail Editor 1 -- Furniture Today, June 13, 2011
HOUSTON — Top 100 retailer Mattress Firm, which has been owned by the investment firm J.W. Childs since 2006, hopes to raise $115 million in an initial public offering of its common stock.
According to a registration statement filed late last week with the Securities and Exchange Commission, the proceeds would be used primarily to pay off a 2009 loan that is carrying a 16% interest rate.
J.W. Childs would retain controlling interest in the retailer after the stock offering is completed.
The price per share hasn't been determined, and the stock exchange where the shares will be traded was not disclosed. The shares will have the symbol MFRM.
Including the 2009 loan, the retailer had total debt of $398.7 million as of Feb. 1, the last day of its most recent fiscal year.
Sales totaled $494.1 million for the year ended Feb. 1, up from $432.5 million in the previous year.
Mattress Firm had a profit if $885,000 for the most recent year, but recorded a net loss of $4.67 million the previous year.
For the year ended Jan. 29, 2008, the retailer had sales of $433.3 million and a net loss of $161.5 million. The loss was due largely to goodwill and asset impairment charges of $142.8 million.
According to the filing, the retailer has expanded aggressively in recent years by adding 232 stores since 2008. As of Feb. 1, it had 592 company-owned and 88 franchised stores in 23 states.