Any Chance for Mattress Firm to Avoid Bankruptcy Has Been Put to Bed
Mattress Firm is the largest bed store in America. They have over 3,500 locations after merging with their largest competitor. Unfortunately, this merger and the rise of online bed-in-a-box shopping has eaten up the company’s market share and taken customers out of their stores.
About Mattress Firm
According to their website, Mattress Firm has over 3,500 store locations in 49 states. At their peak, in 2015, they reported over $3.5 billion in sales. Over the last 30 years they have absorbed companies such as:
- Sleep Train – purchased for $425 million in 2014, this company was huge in the west and northwest.
- Discount Mattress Barn – was purchased and rebranded in 2014.
- Sleep Country USA – also a large chain in the pacific northwest, this company changed their brand name after being purchased by Mattress Firm in 2015.
- Sleepy’s – in 2015, this company was bought out for $780 million.
The last purchase left Mattress Firm with over 3,500 stores. While this can be indicative of a strong successful company, sometimes it is too much growth to be sustainable.
Mattress Firm’s Problems
As previously stated, too much growth can be a killer for a company. The CEO of Mattress Firm admitted that they had too many stores competing with one another. In 1990, the company tried its hand at selling furniture which was a complete failure. However, the companies biggest mistake was waiting to create an online presence. Casper may be personally responsible for changing the mattress industry and burying Mattress Firm. Casper is known for great customer service, a sleek website, and shipping (for free) a high-quality mattress-in-a-box. Even today, Mattress Firm’s website is not as modern and inviting as Casper’s.
Every year, dozens of companies are failing because of their refusal to invest in their online presence.
Details of Mattress Firm’s Bankruptcy
After filing for chapter 11 bankruptcy, the company plans to:
- Close 200 stores immediately.
- Close 500 more stores by the end of the year.
- Exit bankruptcy within two months.
- Open stores in new thriving markets.
Another note, Casper plans to open 200 brick and mortar locations in the near future to catch customers who prefer to feel the mattress before they purchase it.
Bankruptcy is a valuable tool that can be used to get you or your business back on track. It is also a very complex process. To use this valuable tool, you need the experience and skill of a licensed attorney. Elias Dsouza has the experience and skill you need to get back to business.