Tempur Sealy's $4B Battle, Big Lots' Next Chapter, and Macy's Mixed Results

Originally published November 25, 2024. This version was rebuilt from the FTC and Tempur Sealy releases, the Big Lots court approval release and Macy's preliminary results for the FIN archive, and the facts are as of that date.

The week of Thanksgiving 2024 brought news on three big retail stories, a bedding megadeal in court, a discount chain headed for new owners and an accounting surprise at a department store.

The short version

• The FTC's court challenge targeted Tempur Sealy's $4 billion acquisition of Mattress Firm.
• Big Lots received court approval for the sale of substantially all its assets to a Nexus affiliate.
• Macy's said an employee hid approximately $132 to $154 million of delivery expenses.

Tempur Sealy and Mattress Firm

The FTC had voted to block Tempur Sealy's proposed $4 billion acquisition of Mattress Firm, arguing the combined company would have the ability and incentive to suppress competition. Tempur Sealy said federal court hearings were scheduled to begin on November 12.

To ease concerns, Tempur Sealy agreed to sell 73 Mattress Firm stores and its Sleep Outfitters chain to Mattress Warehouse, and to keep supplying those stores.

Update. Tempur Sealy completed the acquisition on February 5, 2025.

Big Lots' next chapter

On November 22 Big Lots said it had received court approval for the sale of substantially all of its assets and operations to an affiliate of Nexus Capital Management. The sale was expected to close in early December.

Its chief executive said the deal would help Big Lots reclaim its position as a leader in extreme value.

Update. In December Big Lots said it no longer anticipated closing the Nexus sale, and Gordon Brothers later completed a purchase that kept hundreds of stores open.

Macy's mixed results

Macy's reported preliminary third-quarter net sales down 2.4% to $4.742 billion and delayed its full earnings release. Its First 50 locations posted comparable sales growth of 1.9%, and Bloomingdale's and Bluemercury also grew.

An investigation found a single employee had made erroneous accrual entries to hide approximately $132 to $154 million of delivery expenses from late 2021 through the quarter. Macy's said the entries did not affect cash or vendor payments, and the employee was no longer with the company.

Final thoughts

A bedding merger, a discount chain sale and an accounting probe at a department store all landed in one week. Each would change the competitive picture for home furnishings sellers in 2025.

Related on FIN

• Every Door in Town
• Furniture Shoppers Are Holding Back

Sources

• Federal Trade Commission, FTC moves to block Tempur Sealy's acquisition of Mattress Firm (July 2, 2024)
• Tempur Sealy International, Mattress Firm transaction update (SEC exhibit, Sept. 2024)
• Tempur Sealy International, Completes acquisition of Mattress Firm (Feb. 5, 2025)
• Big Lots, Inc., Big Lots receives court approval for sale to Nexus (Nov. 22, 2024)
• Big Lots, Inc., Update on court-supervised process (Dec. 19, 2024)
• Gordon Brothers, Completes Big Lots purchase (Jan. 2025)
• Macy's, Inc., Preliminary third quarter 2024 results (SEC exhibit 99.1, Nov. 25, 2024)