Chinese producers make U.S. bedding moves
Don’t look now, but Chinese producers are deepening their commitment to the U.S. bedding market with investments in U.S. bedding producers.
As we reported recently, Chinese bedding major Stylution International acquired the assets and property of Wickline, a
50-year-old independent bedding producer that went out of business last year. Stylution bought the assets at a Chapter 7
bankruptcy auction, paying $300,000 for them. It plans to reopen the Wickline factory in Escondido, Calif.
And, on the other side of the country, Jessup, Md.-based Classic Sleep Products made a Chapter 11 filing to restructure its
business. As part of the restructuring, Classic’s Chinese manufacturing partner will get an equity position in Classic’s new
owner, Classic Brands LLC.
Stylution International, which entered the U.S. bedding market several years ago, aims to grow its U.S. mattress business with the new factory, while Classic will continue to pursue a model of Chinese production for a key segment of its product line.
The Chinese companies in these deals are making opportunistic moves. They see growth ahead in the U.S. market.
So we leave you with this question: Are more deals like these coming, or were those unique situations?
Bed HEAD FRED commented:
Ready or not, here they come. Shipping container loads of mattresses did not compete logistically. So, they get a US beachhead. So, they can give lots of product value and quick turn. If that doesn't work---they will open their own retail chains and pump money into advertising. The BIG 3 or is it the BIG 1 +2 better get ready for price wars. Think $599 is low---just wait! The banks just sent out the new coupon books for your payments---and the Chinese have to mess everything up so early in the year. Go have a drink with Google!
ccf commented:
What are our children going to do if everyone stops buying American goods?
Lisa Stansbury commented:
As with everything else in this industry, things go in cycles. I carry some stuff from Classic, it is "specialty" not innerspring. Most of my innerspring is home grown NC/SC stuff. The competition in the manufacturing sector has benefited the retailers and ultimate consumers. To answer the question, I'm sure more deals like this are coming.
Patriot commented:
I have shopped the stylutions brand. It is crap. The case goods are poorly assembled, with crooked hinges and loose handles. The bedding line they showed in High Point was pitiful. If the floor samples look this bad, I cannot imagine what the production really looks like.
it is unfortunate that another american family business has fallen, and even sadder that the Asian Invasion continues to grow in California.
Store Owners, Support your Domestic Manufacturers. Kick the Chinese out of our Country. Maybe your grandchildren will have a future in a family business that is not owned by someone named Leun Chang....
JW commented:
It is a world market out there. These Chinese companies have money. It has so far been real difficult for these companies to import their finished products to the US with any value. So, they have discovered a better way. I am sure they will ship components and assemble here. Yes, there will be more to come. If the big US companies (Serta, Sealy, Simmons)were not so leveaged with debt they could produce products at a lower cost, then there would be less opportunity for outside players.
hwr commented:
Well said, Warren. Stop the foreign invasion before it destroys us. Wake up Americans, you could be sleeping on a Sely Poterpedic some day. Ugh
Warren Littrell commented:
Hell, Yes! Let's give them the whole furnture industry and follow suit as they did in electronics and a myriad of other U.S. industries. When they have completed their takeover we can all work at the local Comfort Inn at the front desk or cleaning the rooms.
