Mattress Firm Group Plans NYSE Return After Emerging From Bankruptcy

Mattress Firm Group filed for a public offering of shares approximately six years after it was privatized by South African retailer Steinhoff International and filed for Ch. 11 bankruptcy protection in 2018.

Mattress Firm, based in Houston, Texas, previously filed a draft confidential registration statement with the United States Securities & Exchange Commission and announcement he was exploring a potential IPO in September 2021.

Barclays Capital, Goldman Sachs and Jefferies Group act as joint bookkeepers, while Guggenheim Securities, Piper Sandler, Truist Securities and UBS Investment Bank are the bookkeepers. Mattress Firm has applied to list its shares on the New York Stock Exchange under the symbol MFRM.

Current shareholders

Matress Firm is owned by Steinhoff, which controls 50.1% of its capital and which will retain a stake in the capital of the public entity. Other major shareholders of Mattress Firm include CEO John Eck, CFO Maarten Jager and retail director Jody Putnam.

The $ 3.40 billion (£ 2.5 billion) Steinhoff at the time paid for the shares of Mattress Firm at a premium of 115% over its price per share, or $ 64 per share.

Mattress Firm operated 2,353 outlets as of September 28, compared to 2,419 at end-2020 and 2,535 in 2019. Free cash flow was $ 445.9 million through end-2021, compared to a deficit of $ 50.4 million in 2019, after filing for bankruptcy.

Mattress Firm reported an annual loss of $ 165.1 million for the fiscal year ending Sept. 28 on revenue of $ 4.39 billion. The company reported profit in fiscal 2019 of $ 125.6 million on revenue of $ 3.26 billion.

34.9% growth in turnover

Despite a loss of money in 2021, year-over-year revenue represents revenue growth of 34.9%.

Mattress Firm cited retail outlet closures linked to Covid-19, as well as increased costs associated with imposing security measures at retail outlets and distribution centers.

Each of these necessary actions significantly increased our operating costs, including, but not limited to, the costs incurred to implement operational changes.The company said.

Mattress Firm has approximately $ 1.99 billion in long-term debt, including a new syndicated term credit facility totaling $ 1.25 billion led by Barclays Capital, due September 2028, which has was closed on September 24.

Read more: Mattress Firm files confidential prospectus with SEC

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