Sleepy's acquires Mattress Discounters for $11.9 million
Larry Thomas -- Casual Living, November 8, 2012
RICHMOND, Va. — Top 100 retailer Sleepy's was confirmed as the winning bidder for the 80-store Mattress Discounters chain in U.S. Bankruptcy Court here.
Court officials said Sleepy's paid $11.9 million for the company, outbidding the investment firm Longroad Asset Management in a court-supervised auction.
Mattress Discounters isn't in bankruptcy, but parent company RoomStore Inc. is in the midst of Chapter 7 liquidation proceedings. RoomStore owned 65% of the bedding retailer, but an agreement between the bankruptcy trustee and Mattress Discounters CEO Ray Bojanowski, who owned the remaining 35%, allowed the trustee to sell all the retailer's equity.
Sleepy's, based in Hicksville, N.Y., has more than 800 stores and was ranked ninth on Furniture/Today's most recent Top 100 Furniture Stores listing. The retailer had sales of $846 million in 2011, according to Furniture/Today estimates.