No one saw this one coming, believe me. The parent company of Sleepy’s, MFRM, has been mired in mud for the better part of the last year. The stock had been ripped to shreds, off by 50%, amidst a slowing US consumer. So, naturally, a gigantic South African furniture company, dubbed Steinhoff, stepped in and fucking destroyed the 36% of shares sold short in MFRM, acquiring the company near all time highs or 114% higher than Friday’s close.
Founded in 1986, Mattress Firm has approximately 3,500 stores across 48 states with 80 distribution centers. In February, the company solidified its position as a leader in the U.S. mattress retail market when it completed its $780 million acquisition of HMK Mattress, the holding company of Sleepy’s. Sleepy’s was the second-largest specialty mattress retailer in the U.S. with over 1,050 stores in 17 states in the Northeast, New England, the Mid-Atlantic and Illinois.
RIP MFRM shorts. You accounts just went negative equity.
If you enjoy the content at iBankCoin, please follow us on Twitter
“Oh not much. Just holding a short in this mattress firm. Real piece of crap. Markets are just too volatile these days so it’s best to hang on to stocks you know are winners and short the ones you know are losers. You know, it’s true what they say. This is a stock picker’s market.”
“Thinking about getting back out there and going to work actually. Nothing big, just some part time gig. Maybe something outdoors. Just feel so cooped up lately.”
What!?
Baby Boomer discussing the market on Friday versus same Baby Boomer discussing new need for job today.
I thought it was clear enough. The reader is left to imagine the period of time in between, where the short alternated between whimpering in the fetal position and frantically going from site to site in his browser, looking for some sign that the report was false, or the price was in Rands, or for anything that would allow him to take a few breaths without 1500 pounds pressing on his chest.