Mattress Firm
Specialty mattress retailer with stores across the United States.
PE-OWNED
Acquired by Advent International2016-08-11
What Made It Great
Leading mattress specialty retailer with extensive store network and brand partnerships
What PE Will Likely Do
Mattress Firm will experience significant store closures, reducing customer access to their products
Mattress quality and construction will likely degrade, with cheaper foam, thinner coils, and lower thread counts used in new mattresses
Mattress warranties and customer service will likely be reduced or scaled back
Mattress inventory levels will be cut, leading to fewer options and less product availability for customers
Expected Timeline
“0 to 6 months months”
Announcements about 'transformation' and 'optimization' of the Mattress Firm business model
“6 to 12 months months”
First round of store closures, along with staff reductions, announced
“12 to 24 months months”
Noticeable decline in overall mattress quality and selection, with fewer high-end options available
“24 to 48 months months”
Bankruptcy rumors begin to circulate, leading to more aggressive cost-cutting measures that further degrade the customer experience
“48 to 60 months months”
Potential bankruptcy, restructuring, or fire sale of Mattress Firm assets
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Consider alternative mattress providers that are not owned by private equity firms, as they may offer more stable and higher-quality products
Be cautious about purchasing new mattresses from Mattress Firm in the coming years, as the quality and warranty terms are likely to degrade
Monitor Mattress Firm's store closures and product changes, and be prepared to seek alternative options if the customer experience significantly declines
Alternatives
Employee-owned warehouse retailer
Publicly traded retailer with strong values