Is there a Mattress Firm conspiracy theory?
There is a Mattress Firm conspiracy theory floating around the internet. People believe it. What is the Mattress Firm Conspiracy Theory? It holds that the surplus of mattress stores around the country, and their proximity to each other, is actually a complicated scheme to advance a criminal enterprise of some kind.
Is Mattress Firm money laundering?
It's shady, but it is not money laundering. This one might actually have some teeth. Mattress Firm is owned by Steinhoff International, the second-biggest furniture retail company in the world, right after IKEA. And, surprise surprise, Steinhoff is the subject of a massive criminal investigation.
What happened to Mattress Firm?
After that, Mattress Firm spent several years in a period of aggressive expansion. They bought up a number of smaller mattress companies and took over their empty stores under their old names, while also building a number of new stores under the Mattress Firm name.
Do conspiracy theorists confuse money laundering with other issues?
In the course of our research, we found past reporting that indicated the conspiracy theorists might have confused money laundering with other actual pressing matters from 2009, 2017, and 2018. The most recent scheme purportedly involved bribery, kickbacks, and fraud at the company.
Why are there so many Mattress Firm stores?
Around the time that the money-laundering conspiracy theory took off, there were 3,500 Mattress Firm stores in the U.S. If it seemed like there were a ridiculous number of stores open, that's because there were. Mattress Firm filed for bankruptcy in 2018 and closed more than 700 stores as a result.
Why are Mattress Firm's so close together?
It turns out, having stores within close proximity to each other might actually be a reasonable business strategy, says Seth Basham, who works for Wedbush, an investment firm. He spends a lot of time talking to people in the mattress industry. "Their stated premise strategy is called relative market share," he says.
Who is the owner of Mattress Firm?
Steinhoff InternationalMattress Firm Holding C...Mattress Firm/Parent organizations
Is Mattress Firm profitable?
The company isn't profitable, reporting $165.1 million in losses in fiscal 2021, compared with $125.6 million in profit in 2020. An increase in customer transactions helped Mattress Firm revenue rise nearly 35% to about $4.4 billion in 2021.
How much profit is in a mattress?
Consumer Reports, which has been valiantly reviewing mattresses and explaining the industry for years, has cited the profit margins at 30 to 40 percent for wholesalers and another 30 to 40 percent for retailers.
Why are mattresses so expensive?
Mattresses are expensive because they last for a long time and can contain a large amount of expensive materials, such as memory foam, pocket springs or latex. Additional features, such as border trimmings, can also add to the price.
Who is John Eck?
John Eck is the Executive Chairman and CEO for Mattress Firm. In his role, he oversees the strategic vision for the Company, including its 2,500 stores, digital properties and 10,000 team members.
What was Mattress Firm before?
Sleepy's stores were slowly rebranded as Mattress Firm throughout 2016, the last of them completed this process by January 1, 2017. Until 2018, Sleepy's continued to exist as an online retailer.
Why did Sleep Train change their name?
"After thorough evaluation of best practices to better serve our customers and community, we found strength in one united brand and purpose. By coming together under the Mattress Firm name, we can provide a better selection and better pricing based on our ability to buy in larger quantities."
Who is mattress Firms biggest competitor?
Top Competitors of Mattress FirmSleep Country. 1,483. $542 Million.Raymour & Flanigan Furniture. 6,000. $813 Million.Sleep Number. 4,476. $1 Billion.The Brick. 6,000. $1 Billion.Furniture Row. 2,863. $422 Million.Dreams. 1,900. $375 Million.Mathis Brothers. 1,608. $300 Million.Hilding Anders. 9,000. $1 Billion.
Is there a big markup on mattresses?
Consumer Reports reports that markups in the 40-50% range are standard in the industry—and once a mattress crosses the $1,000 threshold, markups are even higher. One assessment of a $3,000 mattress found that it cost about $300 to make—an astonishing 900% markup.
How much debt does Mattress Firm have?
Mattress Firm listed its liabilities of 3.5 billion and its long-term debt is $1.2 billion as of September when it secured a new credit agreement with Barclays Bank and other financial companies. The loan matures September 2028.
How can I make my mattress more firm on one side?
Add a mattress topper on one side for enhanced cushioning, while your partner retains the firm feel they enjoy. On the other hand, one partner can firm up a mattress that's a bit too soft. Try a firming pad over your mattress (but beneath the topper, if you're using one) for added support.
Can you get a mattress with different firmness on each side?
There's no need to suffer with a mattress that isn't the exact amount of firmness that you like. Dual mattress adjustability also allows sleep partners to attain a different level of firm on each side of the bed. Each person can customize their side for pressure relief and overall comfort.
What is a split tension mattress?
A split tension mattress is where you can select a different tension for the left and right side, making them an ideal choice for sleeping partners who prefer different levels of firmness or for differently weighted sleepers.
How many employees does Mattress Firm have?
We have more than 6,500 employees across the country.
How many mattresses do strip malls sell a day?
A huge store selling even just two mattresses a day will make its owners a great deal of profit. And that product is hugely marked up.
Is Mattress Firm a good company?
But Mattress Firm is up to no good, in a way. Mattress Firm was one of many competitors in the mattress field until South African retail giant Steinhoff bought the company for $3.8 billion in 2016. After that, Mattress Firm spent several years in a period of aggressive expansion. They bought up a number of smaller mattress companies ...
Did Mattress Firm go bankrupt?
In the end, even Mattress Firm finally realized Mattress Firm expanded too much. In October 2018, they announced they were closing 700 stores and filing for bankruptcy to restructure the debt taken on buying all those smaller companies.
Who owns Mattress Firm?
Mattress Firm is owned by Steinhoff International, the second-biggest furniture retail company in the world, right after IKEA. And, surprise surprise, Steinhoff is the subject of a massive criminal investigation. It is not money laundering, but it is actually more interesting.
How much did Steinhoff buy Mattress Firm?
They bought Mattress Firm for $2.4 billion, more than twice what the company was worth. And right after Steinhoff made that purchase, Jooste had a big falling out with one of the major suppliers of Mattress Firm, Tempur Sealy, which hurt both companies' sales.
How much markup does a mattress have?
Mattresses, as you might suspect, have a huge markup — around 50 percent for most stores, according to Michael Magnuson, who runs GoodBed.com. He calls buying mattresses a "grudge" purchase. Not a lot of people get excited about buying a mattress.
When did Sleepy's buy Sleepy's?
After the chain bought Sleepy's in 2015, they controlled more than 25 percent of mattress sales in the country. But they may have gotten over their heads, says Basham. "Their results have been what I might call an unmitigated disaster since they acquired Sleepy’s," he says.
Did Amory and Ben go to a mattress store?
Amory and Ben actually headed to a Mattress Firm store , in person, to see if someone there would talk to them. No one at Mattress Firm has spoken to us on the record about it... yet. Our invitation stands.
Is Steinhoff money laundering?
It is not money laundering, but it is actually more interesting. Dan connected with James-Brent Styne, who has written about Steinhoff's dealings in South Africa, where the company is based. They've been there since 1996, when the company's founder, Bruno Steinhoff, moved there from West Germany.
Is Mattress Firm suing?
Mattress Firm is suing two of the real estate executives that were previously fired from the company. They claim those two executives were scheming to cash in on some of the real estate deals, and that the company had to sign really long leases or overpay for some locations.
Who was the mattress firm executive who was sued?
The oldest scheme we could find involved a Mattress Firm executive and $36 million. Forbes reported that Gary D. White, a former in-house vice president, was sued by the company in 2009 for activity that occurred between 2004 and 2008. White died in 2016. The case did not involve money laundering.
Who owns Mattress Firm?
Mattress Firm is owned by Steinhoff, which is currently embroiled in a money laundering saga.”. However, this did not appear to be accurate. In August 2016, CNBC reported that Steinhoff International, a South African company, purchased Mattress Firm. At the time, Mattress Firm operated more than 3,600 stores.
What is the point of money laundering?
The point of money laundering is to funnel an abundance of currency through a safe intermediary to obscure the reality of where the funds originated. According to the reporting, Steinhoff had a lack of money, not an abundance of it. Further, the story made no mention of Mattress Firm.
Is Mattress Firm a money laundering scheme?
Many believe that Mattress Firm is a money-laundering scheme, as they seem to appear everywhere but not have much demand.
When did Mattress Firm file for bankruptcy?
A spokesperson explained: Mattress Firm declared bankruptcy in October 2018 in an effort to restructure its debt obligations, strengthen its balance sheet, and optimize store footprint.
When did Mattress Firm dismiss claims?
Mattress Firm dismissed its claims against the developer and flooring company in late 2009, according to documents. It was unclear if the parties settled. White himself later filed for bankruptcy in Texas. It was unclear as of press time if he settled with Mattress Firm.
Is Steinhoff International a fraud?
In December 2017, Steinhoff International revealed “accounting irregularities,” according to Fin24. However, the reporting mentioned nothing about the company’s being “embroiled in a money laundering saga,” as alleged by the Reddit comment reply. Rather, it was “accounting fraud,” according to Reuters.
