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Mattress Firm Reaches Agreement With Tempur Sealy After Fallout

After a feud between Mattress Firm and Tempur Sealy International, the retailer will reintroduce Tempur-Pedic, Stearns & Foster and Sealy branded mattresses in its 2,500 stores at the beginning of Q4.

The initial relationship between Mattress Firm and Tempur Sealy International crumbled in 2017, amid bitterness surrounding accusations that Mattress Firm was “conspiring” to sell products resembling Tempur-Pedic mattresses under the name “Therapedic.” Tempur Sealy filed a lawsuit in August 2018 and lost its deal with Mattress Firm.

After cutting ties, both companies faced financial struggles. Although Mattress Firm signed a contract with Tempur Sealy’s competitor Serta Simmons Bedding, Mattress Firm’s financial strife increased. The company filed for Chapter 11 bankruptcy in October 2018 and exited the bankruptcy one month later at a cost of nearly 700 store closures.

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The mattress industry has become increasingly competitive, with the entry of online bed-in-a-box retailers like Casper, Leesa and Nectar Sleep. Through its parent company Steinhoff International, Mattress Firm reported a loss of $125 million on revenue of $2.6 billion in 2018.

In addition to its new deal with Mattress Firm, Tempur Sealy is expanding its current sales agreement with Big Lots to provide more Sealy mattresses priced under $1,000, and will be growing its European retail distribution network with Beter Bed Holding, a Dutch holding company.

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