Steinhoff International needs funding to turn around Mattress Firm
Steinhoff paid $3.8bn for Mattress Firm two years ago after a major spending spree — but it has turned into a real headache
Johannesburg/London — Steinhoff International Holdings is assessing ways to attract extra funding for Mattress Firm to execute a turnaround of the troubled US bedding retailer. Bought for $3.8bn two years ago, Mattress Firm has emerged as a headache for Steinhoff as it strives to shore up liquidity following an accounting scandal. The 3,300-store chain expanded too aggressively, suffered from ineffective marketing, and has been embroiled in a dispute with suppliers, Steinhoff said in a presentation to creditors in London on Thursday. Steinhoff bought Mattress Firm towards the end of an acquisition spree that preceded the uncovering of accounting irregularities in December, which wiped almost 95% off the share price. It secured an agreement with lenders over the restructuring of almost €10bn of debt in July, buying it time to stabilise an empire that also includes Conforama in France and Pepkor Europe. Mattress Firm needs “incremental liquidity” for its recovery to be secured and ma...
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