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Mattress Firm Scraps IPO Plans

Mattress Firm Group Inc. filed a request Jan. 9 with the United States Securities and Exchange Commission (SEC) to withdraw its initial public offering.

The bedding retailer first filed for the IPO in January 2022, saying it wanted to raise $100 million, the placeholder amount companies often list in their SEC paperwork. Mattress Firm was taken private in 2016 by Steinhoff International for $3.8 billion, but filed for bankruptcy in 2018 only to emerge a month later, closing nearly 700 stores in its reorganization.

In October, Steinhoff said, “while the monitoring of market conditions is ongoing, the Steinhoff Group is continuing to explore strategic options for Mattress Firm. The evaluation process remains ongoing and no definitive decision has been taken with respect to any specific course of action.”

Mattress Firm has struggled to adapt to an increasingly competitive bedding market, with direct-to-consumer brands taking a chunk of their marketshare. The company also has seen increased competition from retailers such as Amazon, Wayfair, Walmart and Target, which have all increased their online mattress offerings in recent years.

With softening demand for home goods and fears of recession, mattress companies have felt the pinch in recent months. The International Sleep Products Association reported that unit shipments of U.S.-produced mattresses and foundations decreased 26.7 percent during the second quarter of 2022, and wholesale dollar value was down 10.4 percent over the same quarter in 2021.

And trouble continues looming over the broader home retail sector. Bed Bath & Beyond is on bankruptcy watch after the chain reported a miserable holiday quarter Tuesday and is laying off yet another round of employees after announcing 20 percent headcount cuts last year.