Mattress Firm, the largest seller of mattresses in the United States and most proverb companies was filed for bankruptcy protection yesterday (5 October). It had been reported in August to investigate bankruptcy proceedings and change its money losing stores.
Houston-based Mattress Firm was founded in 1986 and had sales of over $ 3 billion. But the company predicted to lose 150 million dollars in the 2018 financial year, according to court reports reported by the AP. Mattress Firm has more than $ 1 billion in debt and owes nearly $ 65 million to its largest creditor, Simmons Manufacturing Co.
Mattress firm in court applications pointed to rapid expansion and "cannibalization" of sales from stores that were grouped too close. "[M]" are all mattress companies in direct competition with other mattress companies, resulting in a disappointment in sales, "said the company. It plans close to 700 of its more than 3,200 stores to re-launch the business.
But the company also failed to understand how much Americans hate mattresses. Mattress stores are known as great retailers that trick customers to pay more, with opaque prices and confusing brands. A common trick is to inflate the "standard" price of an item and then offer a big "discount" that still leaves the mattress price well above its actual cost. Another trick is that the manufacturers sell the same mattress under different names in different stores, making it difficult for buyers to compare prices.
The Madrass Firm grew rapidly partially by buying Sleepy's rival mattress vendors and comrade sledges for $ 780 million in late 201
The company was blindsided by startups who recognized how terrific mattress shopping could be and adorned a better experience. Casper, founded in 2014, raised $ 240 million to sell mattresses directly to consumers. It promised easy online ordering and hassle-free delivery and return of relatively affordable mattresses.
There are now a variety of online car dealerships like Leesa, Tuft & Needle and Sapira. Amazon has also entered the field and offers its own mattresses in bed.
As usual sellers, some of the newcomers make up for shoppers problems. The fast seller has been replaced with fraudulent online reviews and search engine optimized ads that send no malicious internet purchasers against poorer products.
One thing is certain: None of the online options can compete with Madrass Firm when it comes to being punny.