Tempur Sealy shares soared nearly 9% in post-market trading Tuesday after Reuters reported that Mattress Firm Inc is preparing to file for bankruptcy.
Mattress Firm, the largest U.S. mattress retailer, has 3,000 brick-and-mortar locations. It has been struggling in recent years against online retailers and its parent company Steinhoff International Holdings NV also has debt.
Tempur Sealy, the maker of the mattress brand Tempur-Pedic, pulled its products from Mattress Firm last year.
Once Mattress Firm files for bankruptcy, the process will be complete in a couple of months and its vendors are expected to be paid in full, according to unnamed sources from Reuters.
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