Mattress Firm’s Bankruptcy Could Burden Serta Simmons: S&P (1)

Mattress Firm’s bankruptcy filing is likely to have a negative effect on Serta Simmons Bedding LLC’s financial performance and potentially lead to higher debt leverage, S&P says in a note. Tempur Sealy International Inc. could benefit, S&P says.

• S&P estimates SSB’s revenue could decline by “at least the low- to mid-single digit percent area,” which could cause its debt leverage to increase above 9x from about 8.6x for the 12 months ended June 30
  • SSB is unlikely to recoup in the near term from the five-year marketing agreement it made with Mattress Firm, in which it ...