Tempur Sealy’s stock soars after report Mattress Firm bankruptcy was imminent
Shares Tempur Sealy International Inc. soared 8.8% in premarket trade Wednesday, as investors cheered a report that mattress retailer Mattress Firm Inc. is close to filing for bankruptcy. The rally comes after the stock sank 10% over the past four sessions, amid concerns over increasing competition following reports Amazon.com Inc. mattresses had hit the market. Reuters reported late Tuesday citing people familiar with the matter, that Mattress Firm, which was acquired by Steinhoff International about two years ago, was preparing to file for bankruptcy protection as early as this week in an effort to exit costly store leases and shore up its business. Tempur Sealy terminated all contracts with Mattress Firm in January 2017. Tempur Sealy’s stock has tumbled 23% year to date through Tuesday, while the S&P 500 has gained 9.3%.
Source : MTV
