Mattress Firm

Mattress Firm, Inc.

Company type	Subsidiary
Industry	Mattress retail
Founded	July 4, 1986 (1986-07-04) in Houston, Texas, United States
Founder	Steve Fendrich, Harry Roberts, Paul Stork
Headquarters	Houston , United States
Area served	United States
Key people	Scott Thompson (interim CEO)
Products	Mattresses and related products
Parent	Somnigroup International Inc. (formerly Tempur Sealy)

Mattress Firm, Inc. is a mattress retail company based in the United States, established on July 4, 1986, with its main office located in Houston, Texas.

Origins

The company was founded by Steve Fendrich, Harry Roberts, and Paul Stork, all former employees of Houston’s American Bed Co. In their roles, Fendrich handled accounting, Roberts was responsible for advertising and merchandising, and Stork managed daily operations. Their inaugural store opened in Houston, distinguishing itself by permitting customers to try mattresses in-store and providing same-day delivery services. Within twelve months, they expanded to four stores.

By 1988, Mattress Firm had formed a partnership with Stearns & Foster, positioning itself as a premium mattress retailer by the late 1990s. Although the company briefly offered furniture items, its primary focus remained on mattresses. By 1999, Mattress Firm had grown to more than 250 locations and generated annual revenues surpassing $300 million.

Private Equity Ownership

In October 2002, Mattress Firm was acquired by an affiliate of Sun Capital Partners from investors that included Mattress Holdings International, which was controlled by Sealy and Bain Capital. Following this acquisition, the company broadened its product offerings to include additional mattress brands.

In January 2007, private equity firm J.W. Childs Associates bought Mattress Firm from Sun Capital Partners. By mid-2007, the retailer operated 355 corporate-owned stores along with 45 franchises spread over 19 states. Later that year in August, Mattress Firm expanded further by acquiring Mattress Pro, adding locations in Texas and Nevada.

Public Offering and Growth

Mattress Firm went public with an initial stock offering in 2011 while J.W. Childs maintained majority ownership. The company pursued rapid expansion through multiple acquisitions: in May 2012, it purchased Mattress Giant, incorporating 180 stores across Texas and Florida; then in November 2013, it acquired Mattress People for $1.8 million as well as a franchisee operating 39 stores in Wisconsin and Illinois for $6.3 million.

In May 2014, Mattress Firm added 75 stores by acquiring Colorado-based Mattress King and Arizona’s BedMart for $35 million combined. September marked two significant deals: the purchase of Sleep Train for $425 million gave Mattress Firm a presence across six western states with 310 locations including Sleep Country USA and other affiliated brands; simultaneously, Bedding Experts was acquired for $60 million to establish a foothold in Chicago with 39 stores. All these brands were subsequently rebranded under the Mattress Firm name.

On January 6, 2015, the company expanded further by acquiring Sleep America’s 45 Arizona stores for $12.5 million along with Pennsylvania’s four-store Mattress World chain. By July of that year, Sleep Country USA outlets began transitioning to the Sleep Train brand. Additionally, Mattress Firm partnered with Wayfair to provide same-day delivery options for mattresses.

In December 2015, Mattress Firm announced the $780 million acquisition of rival Sleepy's, increasing its store count to over 3,500 nationwide and entering six new states including Massachusetts and New Jersey. The Sleepy's name continues as a product line under the Mattress Firm umbrella.

Through these strategic purchases, Mattress Firm significantly enhanced its market share and national reach while reinforcing its approach centered on extensive retail coverage and brand unification.

Acquisition by Steinhoff and Bankruptcy

In August 2016, Steinhoff International completed the purchase of Mattress Firm for $3.8 billion, taking the company private and establishing the largest mattress retail distribution network globally. At that point, Mattress Firm operated approximately 3,500 outlets and 80 distribution hubs spanning 48 states. Steinhoff unified its mattress brands by rebranding Sleep Train and Sleepy's stores as Mattress Firm locations during 2017.

Early in 2017, Steinhoff attempted to renegotiate Mattress Firm’s agreement with Tempur-Sealy International, which resulted in Tempur-Sealy terminating their contract. Subsequently, Mattress Firm formed a partnership with Serta Simmons. This led to legal action from Tempur-Pedic over allegations of unauthorized sales and counterfeit "Therapedic" products; the disputes were resolved by February 2019. Shortly after, CEO Steve Stagner stepped down, and a renewed contract with Tempur-Sealy was finalized in June 2019.

Although Mattress Firm was the leading mattress retailer by 2018, it experienced sales declines due to increased online competition and lost revenue from Tempur-Sealy. The company’s aggressive expansion proved problematic; it operated more stores than Big Lots, Michaels, and Williams-Sonoma combined, capturing three times the market share of its rivals. Markus Jooste, Steinhoff’s CEO, later described the acquisition as a "disaster."

Further complications arose from a real estate controversy involving inflated lease agreements. In October 2017, Mattress Firm filed suit against two executives accused of accepting bribes connected to above-market leases. The termination of the Sealy supply contract, legal expenses, and branding challenges contributed to significant revenue losses. Meanwhile, Steinhoff’s accounting scandal masked Mattress Firm’s financial struggles, culminating in a $1.9 billion write-down.

On October 5, 2018, Mattress Firm filed for Chapter 11 bankruptcy, intending to shutter 700 underperforming stores out of more than 3,300 locations. The company successfully emerged from bankruptcy in November 2018 following these closures.

John Eck assumed the role of CEO in 2019. In March 2020, amid disruptions caused by the COVID-19 pandemic, Mattress Firm joined several retailers in deferring rent payments. The company submitted a confidential IPO filing in September 2021 and made it public in January 2022 but ultimately withdrew the offering in 2023 due to market instability.

In 2023, Mattress Firm announced plans to relocate its headquarters to Westchase in Houston. By August 2024, it had partnered with DoorDash to provide two-hour delivery services from its stores, enhancing customer convenience.

Acquisition by Tempur Sealy

In May 2023, Tempur Sealy revealed intentions to acquire Mattress Firm through a $4 billion merger. However, the Federal Trade Commission (FTC) blocked this transaction in July 2024 citing antitrust concerns. In response, Tempur Sealy agreed in September to divest 73 Mattress Firm outlets, its Sleep Outfitters subsidiary comprising 103 locations, and seven distribution centers to Mattress Warehouse. The company filed a lawsuit against the FTC in October aiming to halt the regulatory process and succeeded in January 2025, allowing the acquisition to move forward.

The merger was completed in February 2025 with Tempur Sealy rebranding itself as Somnigroup International Inc. Shortly thereafter, John Eck resigned as CEO of Mattress Firm, and Scott Thompson—Tempur Sealy’s chairman and CEO—was appointed interim CEO.