In January 2022, the mattress chain announced its plans to list on the New York Stock Exchange via an IPO that would have returned the furniture retailer to the public markets six years after South Africa’s Steinhoff International took the company private.
But those plans are now at a standstill, with Steinhoff citing “volatility in the IPO market” as the reason behind the decision in a statement: “Mattress Firm continues to actively explore all options and paths forward, including resuming the IPO process once the markets are favourable.”
The move has prompted some analysts to surmise that Mattress Firm might instead now be open to an acquisition, with Tempur-Sealy International seen as a prime buyer, according to Wedbush Securities.
After going private in 2016, the chain hit a few bumps in the road, including an accounting scandal that saw the resignation of the current CEO. In 2017, Mattress Firm filed for bankruptcy to facilitate a prepackaged restructuring that included the closure of 700 underperforming stores. Today, Mattress Firm operates 2,300 stores across the U.S. following a years-long turnaround effort that included the closure of 950 locations. The chain has faced increased competition in recent years from DTC mattress startups like Casper and Purple as well as other online retailers including Wayfair and Amazon.