Mattress Firm files for IPO

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Texas-based mattress firm Group Inc. has filed for an initial public offering, becoming the latest retailer to return to the public markets after bankruptcy.

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According to a filing late Friday, the company has filed to sell $100 million worth of shares, although that figure is often a placeholder used to calculate fees. The specialty retailer filed a confidential draft registration statement with securities regulators in September.

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“The sleep industry is large, growing and resilient,” said mattress firm its brochure, claiming a market share of around 20%.

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It listed revenue of $4.4 billion in fiscal 2021, up from $3.3 billion a year earlier. It turned a net loss of $165.1 million last year, however, from a profit of $126 million in fiscal 2020.

As of September, total liabilities reached $3.5 billion and long-term debt at $1.2 billion, the company said. It had 2,353 stores from 2,419 stores in September 2020.

The mattress firm sought Chapter 11 protection in 2018 and emerged from bankruptcy in the same year.

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“Since the start of fiscal 2019, we have fundamentally transformed our business across all operations, positioning us well to capitalize on growth opportunities and capture market share,” the company said in the filing.

It closed more than 950 stores to create a “highly productive and profitable store base”. It also invested in online sales and improved its business mix.

Mattress Firm plans to trade its shares on the New York Stock Exchange under the symbol MFRM. Underwriters include Goldman Sachs, Barclays and Jefferies.

Shopping-mall staple Claire Holding Inc. filed for an IPO in September. The teen retailer also filed for bankruptcy in 2018, one of many casualties of nearly $2 billion in debt and declining foot traffic at the mall.

Earlier on Friday, a Businesshala report, citing people familiar with the matter, said social media company Reddit Inc. had chosen to help its bankers go public as early as March. Other companies on the IPO track include grocery-delivery service Instacart and data-analytics company Databricks.

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