John Eck has resigned as CEO of Mattress Firm just one week after Tempur Sealy completed its $5 billion acquisition of the company.
Scott Thompson, CEO of Tempur Sealy, will temporarily take on the role of Mattress Firm’s CEO, according to a company statement. Eck has agreed to a consulting arrangement to facilitate a smooth leadership transition.
Tempur Sealy plans to appoint a permanent CEO for Mattress Firm within the next six to nine months.
The acquisition deal, which was initially announced in 2023, was delayed due to the Federal Trade Commission’s concerns that it might reduce competition and lead to higher prices for consumers.
However, with the transaction now finalized, Tempur Sealy will rebrand the parent company as Somnigroup.
Moving forward, Mattress Firm, Tempur Sealy, and Dreams will operate as separate business units.
“We are now the world’s largest bedding company, with unmatched capabilities in design, manufacturing, distribution, and retail, while also owning some of the most recognized brands in the industry,” Thompson said during a call with analysts discussing the acquisition.
To address antitrust issues, Tempur Sealy plans to divest 73 Mattress Firm stores and the Sleep Outfitters subsidiary by the second quarter of the year, a decision made last fall in response to regulatory concerns.
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