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Will rely on own retail outlets to sell mattresses
Select Comfort Corp. (Minneapolis) has announced it will stop selling its mattresses through third-party stores in the U.S. and rely strictly on its own chain of retail outlets. “This change is part of the company’s effort to reignite the Sleep Number brand and continue to advance its distribution strategy,” the company said in a news release.
The company, which is in the process of being acquired by private equity firm Sterling Partners (Northbrook, Ill.), says the decision was mutually agreed upon with its retail partners, which include Mattress Firm, Sleep Train and Sleep America. The retailer will keep its partnerships in Canada, Alaska and Hawaii, as well as maintain its relationship with the QVC shopping channel and Radisson Hotels and Resorts.
According to the company’s securities filings, Select Comfort generated 90 percent of its 2008 net sales from company-owned channels, including its own stores and web site. It has closed 50 of its more than 400 stores already this year.
Sterling is expected to pay $35 million for a nearly 53 percent stake in Select Comfort and plans to bring back former ceo Patrick Hopf to run the company.
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