Tempur Sealy International Inc. announced in a Jan. 30 news release that it had terminated all contracts with sleep shop chain Mattress Firm, after the two companies were unable to reach a mutually agreeable supply arrangement.
The mattress manufacturing major Tempur Sealy, which has headquarters in Lexington, Kentucky, said it expects to cease doing business with Mattress Firm during the first quarter. In 2016, Houston-based Mattress Firm was acquired by home goods and automotive retailing and manufacturing giant Steinhoff International Holdings NV, based in Johannesburg.
“Over the course of the week, we conducted discussions with representatives of Mattress Firm and Steinhoff, and we considered their request for a significant change in economic terms,” said Scott Thompson, Tempur Sealy chair and chief executive officer. “Ultimately, we concluded that it was in the long-term interest of all of our stakeholders to terminate our contracts with Mattress Firm. This enables us to immediately reorient our employees and resources to support retail partners that exhibit a long-term commitment to Tempur Sealy’s brands.”