DISTRESSED DAILY: Mattress Maker Purple Struggles With Delays

Production delays are straining mattress manufacturer Purple Innovation Inc.’s relationship with its wholesale partner, boosting a measure of its default probability in the next year to almost 39%.

The probability of default is up from 16.5% in December, according to S&P Global Market Intelligence. The company’s inability to deliver its products to Mattress Firm in “a timely manner” prompted the retailer to reduce its orders from Purple, according to a research note from B. Riley analyst Susan Anderson. The delays date back to a fatal May accident in one of Purple’s Utah factories.

Anderson said in an interview ...