Mattress Firm, the country's largest mattress retailer with more than 3,000 stores nationwide, filed for Chapter 11 bankruptcy protection Friday, Oct. 5, sending rival Tempur Sealy International Inc. (TPX - Get Report) falling 1.3%, after climbing more than 5% in premarket trading.
Mattress Firm recently cited "ineffective brand marketing" as one of its key strategic issues in a public lender update. The company also noted that it was experiencing a shift in supplier relationships and "merchandising decisions that negatively impacted profitability."
Mattress Firm used acquisitions to expand in recent years, acquiring Mattress Giant in 2012, Sleep Train in 2014, and Sleepy's in 2016. The company has closed hundreds of locations recently and could look to close more in order to cut costs.
Along with Tempur Sealy, Amazon.com Inc. (AMZN - Get Report) could also be a beneficiary of the impending consolidation of the mattress industry. Amazon recently launched AmazonBasics Memory Foam Mattress as a private label option for mattress shoppers.
Amazon's mattress comes in twin, full, queen, king and California king sizes and starts at $130. Amazon joins other companies like Casper, Leesa, Yogabed and Purple looking to take market share from Mattress Firm.
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