BANKRUPTCY RUMOURS
How Steinhoff’s Mattress Firm faces a lumpy fate
The future of cash-strapped Mattress Firm, the largest mattress retailer in the US, remains uncertain as controlling shareholder Steinhoff refused to comment on reports that it was preparing to file for bankruptcy protection for the unit. Steinhoff’s purchase of Mattress Firm was one of its last major deals before accounting irregularities came to light in December 2017, sparking a 95% slide in the furniture retailer’s share price. In August 2016, Steinhoff paid a 115% premium to acquire Mattress Firm in a $3.8bn deal that gave Steinhoff its first exposure to the US market. Ahead of the Steinhoff acquisition, Mattress Firm had gone on an aggressive store expansion spree in a bid to counter the impact of weak demand and increasing competition from online retailers.
It added 1,500 stores, growing its footprint to about 3,400 shops, some of which were across the road from each other. This left Mattress Firm with debt of $1.4bn by the time of the August 2016 deal. Asked about repo...
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