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Sleepy's

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Sleepy's, LLC
Company typePublic
Nasdaq: MFRM
IndustryRetail
FoundedFebruary 4, 1931; 93 years ago (1931-02-04) (as Bedding Discount Centers)
FoundersLouis Acker
Harry Acker
DefunctJanuary 1, 2017; 7 years ago (January 1, 2017) (retail stores only)
FateAcquired by Mattress Firm, stores rebranded under Mattress Firm name
SuccessorMattress Firm (retail stores only)
Headquarters
Hicksville, New York
,
United States
ProductsMattresses, bedding
BrandsSealy, Serta, Simmons, Tempur-Pedic, Stearns and Foster, Beautyrest, Spring Air, King Koil, Ortho-Posture
ParentSteinhoff International
(Mattress Firm Inc.)
Websitewww.sleepys.com

Sleepy's was a retail mattress chain with over 1,000 stores, primarily situated in the northeastern United States. The company was founded in New York City in 1931.[1] Sleepy's was acquired by Mattress Firm in December 2015[2] and all stores were rebranded under the Mattress Firm name on January 1, 2017, but the website continued as an online retailer until 2018.[3] Mattress Firm now uses the Sleepy's name for their private label mattresses.[4]

Business history

A Sleepy's store in Old Saybrook, Connecticut

In 1931, Louis Acker opened his first mattress store with his son, Harry.[2] The business was incorporated in 1957 as Bedding Discount Center; in 1975 the chain was renamed to Sleepy's. In 1977, Sleepy's opened its eighth store and relocated its corporate offices and warehouse to a 20,000-square-foot (1,900 m2) space in New Hyde Park.[citation needed] In 1986, it relocated its headquarters and distribution center to a 60,000-square-foot (5,600 m2) building in Port Washington, NY. In 1993 Sleepy's acquired Kleinsleep and in 1996 Mattress Discounters in New York and New Jersey.[citation needed] In 1994, the 75th store opened and the corporate headquarters and distribution center moved to Bethpage, NY in a 150,000-square-foot (14,000 m2) building that was expanded in 1995 to 80,000 square feet (7,400 m2).[citation needed]

David Acker, Harry's son, became the president of Sleepy's in 2001. In 2002, Sleepy's built a new 211,000-square-foot (19,600 m2) warehouse in Robbinsville, New Jersey.[citation needed] Mattress Firm sleep chains locations in Connecticut and Massachusetts were acquired in 2003, and in 2007 Sleepy's acquired the Rockaway Bedding chain adding 200 stores.[citation needed] In the summer of 2009 Sleepy's moved its headquarters and New York distribution facility to a newly constructed 500,000-square-foot (46,000 m2) building in Hicksville, New York.[5] In 2009, Sleepy's acquired the assets of Dial-A-Mattress International and 1-800-Mattress Corp.,[6] including its two domain names, and a year later the Connecticut mattress specialty chain Better Bedding.[7] In 2013, Sleepy's expanded into the Chicago market.[8] In October 2014 Sleepy's opened its 1,000th store.[9]

Their mascot, the Sleepy's man in a red and white night shirt and cap, was introduced in 1976.[citation needed] In 1978 the first televised Sleepy's commercial starring President Harry Acker aired.[citation needed] In 2009, the company launched their e-commerce website.[10]

Acquisition by Mattress Firm and rebranding

In December 2015, Sleepy's announced that it was being acquired by competitor Mattress Firm (MFRM) for $780 million.[1] Sleepy's stores were slowly rebranded as Mattress Firm throughout 2016, the last of them completed this process by January 1, 2017.[4] Until 2018, Sleepy's continued to exist as an online retailer. Mattress Firm eventually reused the Sleepy's name for their own brand of mattresses.[4]

On October 5, 2018, Mattress Firm filed for Chapter 11 Bankruptcy Protection and announced to close up to 500-700 stores, which included former Sleepy's stores that are close proximity to a nearby Mattress Firm store. In November 2018, the company had emerged from bankruptcy.[11][12]

Business operations

A Sleepy's store in Brooklyn, New York, opened in 1975

Sleepy's carried mattress brands including Sealy, Serta, Simmons, Beautyrest, Posturepedic, Tempur-Pedic, King Koil, and Stearns & Foster. Like other major retailers, Sleepy's carried mattress lines that were unique to the seller, so there was no way to compare prices with their competitors.[13][14]

Sleepy's stores were located primarily in the Northeastern, Mid-Atlantic and the Midwest, including Connecticut, Delaware, District of Columbia, Illinois, Indiana, Maine, Massachusetts, Maryland, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Virginia, Vermont, and West Virginia.[citation needed] Oftentimes, stores would be located close to or nearby of other Sleepy's stores.[15] Nationwide delivery was available through their official website.[citation needed]

In 2009, a trade publication labeled Sleepy's as the fastest-growing furniture retailer in the US[16] and in 2014 ranked them 11th in growth.[17]

Complaints

In 2004, Sleepy's resolved a lawsuit filed by the New Jersey division of consumer affairs. The lawsuit alleged that Sleepy's misled consumers regarding their exchange policy, customer refunds, and advertisements. There were also questions about delivery of faulty merchandise and failure of delivery. Sleepy's agreed to pay $750,000 in costs and restitution to reach settlement. In addition to the payment the company agreed to clearer advertising, issuing refunds more willingly and improving customer service.[18]

In 2007, Sleepy's agreed to pay $200,000 to resolve complaints and settle deceptive sales charges in New York. As part of the settlement, Sleepy's agreed to pay a total of $200,000, which includes restitution to consumers and penalties, as well as a commitment to new policies and procedures to achieve full compliance with local and state laws. The settlement marked a conclusion to the agency's extensive investigation into approximately 300 consumer complaints filed over the previous three years through DCA or referred to the Department by other agencies including the New York State Attorney General's Office and the Better Business Bureau.[19]

In April 2011 Sleepy's was cleared by Connecticut Attorney General George Jepsen of charges regarding complaints of bed bug infestations and accusations of reselling used mattresses.[20]

In 2014, Sleepy's was ranked last of 15 major mattress retailers listed in a poll of Consumer Reports readers, the same result it had reported in its 2012 rankings. The 2014 ranking was based on 6,105 shopping experiences.[21][22][23]

References

  1. ^ a b Beckerman, Josh (December 1, 2015). "Mattress Firm to Buy Sleepy's for $780 Million". Wall Street Journal. ISSN 0099-9660. Retrieved May 20, 2016.
  2. ^ a b "Sleepy's sold for $780M to rival Mattress Firm". New York Post. December 1, 2015. Retrieved August 25, 2018.
  3. ^ "Ortho Mattress Guide". Friday, 22 November 2019
  4. ^ a b c "Frequently Asked Questions". Mattress Firm. Retrieved February 18, 2020.
  5. ^ Winzelberg, David. "Sleepy's uncovers new Hicksville offices". libn.com. Long Island Business News. Retrieved January 21, 2015.
  6. ^ Samuels, Michael H. "Sleepy's buys Dial-A-Mattress for $25 million". libn.com. Long Island Business News. Retrieved January 21, 2015.
  7. ^ Court OKs Sleepy's purchase of Better Bedding. Furniture Today. Retrieved December 30, 2014.
  8. ^ Mattress retail store Sleepy’s opens in CL. Northwest Herald. Retrieved December 30, 2014.
  9. ^ "Sleepy's celebrates its 1,000th store". www.poughkeepsiejournal.com. Poughkeepsie Journal. Retrieved February 12, 2015.
  10. ^ Evans, Katie. "Retail chain Sleepy's launches an e-commerce site at Sleepys.com". www.internetretailer.com. internet RETAILER. Retrieved February 12, 2015.
  11. ^ Business, Jordan Valinsky, CNN. "Mattress Firm files for bankruptcy". CNN. Retrieved November 22, 2018. {{cite news}}: |last= has generic name (help)CS1 maint: multiple names: authors list (link)
  12. ^ "Mattress Firm emerges from Chapter 11 bankruptcy". Houston Chronicle. November 21, 2018. Retrieved November 22, 2018.
  13. ^ "No Rest For The Weary". courant.com. Hartford Courant. Retrieved January 6, 2014.
  14. ^ "How to come out on top when buying a mattress". yahoo.com. Yahoo!. Archived from the original on September 21, 2013. Retrieved October 26, 2019.
  15. ^ "Why Are There So Many Sleepy's Mattress Stores?". YouTube.{{cite web}}: CS1 maint: url-status (link)
  16. ^ Engel, C. (June 8, 2009) Sleepy's leads top 100 in growth. Furniture Today, 33(39), 11-14.
  17. ^ "More than half of companies on Top 100 list are expanding". furnituretoday.com. Clint Engel. Retrieved January 20, 2014.
  18. ^ Sleepy’s Enters Into Agreement with NJ to Resolve Suit. New Jersey Office of the Attorney General. Retrieved December 30, 2014.
  19. ^ Sleepy’s Enters Into Agreement with NY to resolve complaints and settle deceptive sales charges Archived March 29, 2010, at the Wayback Machine. New York City Department of consumer affairs. Retrieved December 30, 2014.
  20. ^ State of Connecticut Attorney General press release.Retrieved December 30, 2014.
  21. ^ "Serta, Sleep Number top Consumer Reports mattress ratings". furnituretoday.com. Furniture Today. Retrieved October 29, 2014.
  22. ^ "The top mattress brands and retailers". consumerreports.org. Consumer Reports. Retrieved October 29, 2014.
  23. ^ "Mattress buying guide". consumerreports.org. Consumer Reports. Retrieved October 29, 2014.
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