US buy difficult to bed down for Steinhoff
Steinhoff disappoints as it overhauls newly acquired but underperforming billion-dollar mattress business
Steinhoff’s foray into the US has come with financial pain as the group overhauls its newly acquired but underperforming billion-dollar mattress business. Its share price fell 5.67%, to close at R65.50. The Mattress Firm, acquired in 2016 for $2.4bn, cost Steinhoff about $54m in rebranding in the six months to March 2017. Speaking to investors and analysts on Wednesday, CEO Markus Jooste said there had been a lot of “complications and store closures” in the US business, but the management team — under executive chairman Steve Stagner and president Ken Murphy — had done well to navigate the challenges. “Mattresses and bedding have been a key product category since Steinhoff’s inception,” said Jooste. “Since the acquisition of Mattress Firm, Steinhoff has become the leading multibrand bedding retailer in the world. We are extremely excited about the future of Mattress Firm, especially after these past six months. I believe the company will follow in the footsteps of Conforama and Pepk...
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