Mattress Firm completes Mattress Liquidators purchase
Houston — Mattress Firm Holding Corp. has completed its acquisition of the mattress specialty retail assets and operations of Mattress Liquidators, Inc., which operates Mattress King retail stores in Colorado and BedMart retail stores in Arizona.
This acquisition will add approximately 75 specialty retail stores to the Mattress Firm company-operated store base in markets where the company currently operates, primarily Denver, Colorado, Phoenix, Arizona and Tucson, Arizona, for an aggregate purchase price of approximately $35 million, subject to customary purchase price adjustments. The purchase price was funded by cash reserves and revolver borrowings, as well as a $3.5 million seller note that is payable in quarterly installments over two years.
Mattress Firm expects to rebrand and transition Mattress King and BedMart stores into Mattress Firm stores and has begun the process of outfitting the newly acquired stores with Mattress Firm’s merchandising approach, product offerings, point of sale systems and sales programs.
Lids Sports Group acquires Cardboard Heroes
Indianapolis — Lids Sports Group is acquiring Cardboard Heroes, a licensed sports apparel, headwear and novelty retailer headquartered in Dayton, Ohio. The acquisition consists of 19 Cardboard Heroes stores in Ohio and Kentucky, which include four Buckeye Room locations that specialize in Ohio State University sports merchandise, as well as the e-commerce websites cheroes.com and buckeyeroom.com.
“The recent acquisition of Cardboard Heroes allows us to further enhance our retail presence in Ohio and Kentucky, as well as expand our reach online through its various e-commerce platforms,” said Ken Kocher, president of Lids Sports Group. “These new locations tie in well with our sports retail focus and allow us to provide additional licensed sports merchandise that complements our existing Buckeye Corner and Fan Outfitter locations in the region.”
Lids currently operates 936 headwear specialty retail stores, 151 sports fan retail stores and 57 team-specific professional sports and university athletics retail stores across North America.
Report: Coach to discount handbags
New York — Coach Inc. will reportedly start offering 25% discounts on its luxury handbags at its stores in twice-a-year sales during June and December. According to Bloomberg, Coach will reduce prices on end-of-season and discount merchandise from 30-50%.
Coach has never before discounted items in its own full-price stores, although it does operate outlet stores and has conducted sales with third-party retail partners. The first discount period starts with an invite-only presale June 6-12, followed by a general sale. Coach is launching the discount strategy after reporting declining net income, net sales and same-store sales during its third quarter fiscal 2014.