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Mattress Firm parent Steinhoff offers shareholders new deal

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Illustration: Gabriella Turrisi/Axios

Steinhoff International Holdings is offering its shareholders a 20% stake in the company after they rejected a reorganization last month that would have given creditors 80% of the equity, Bloomberg reports.

Why it matters: It's the latest attempt by the South Africa-based retailer to avoid bankruptcy.

Of note: Mattress Firm, which Steinhoff still holds a 50% stake in according to its website, filed for bankruptcy in 2018.

Details: The new deal gives both creditors and shareholders contingent value rights rather than depository receipts, putting both parties on a more even footing, per Bloomberg.

  • Steinhoff, which is saddled with about 10 billion euro in liabilities, would gain more time to pay that debt off under the reorganization, also per Bloomberg.
  • It would also provide for a more orderly wind-down.

Catch up fast: Steinhoff has had years of legal troubles that culminated in a 1.4 billion euro settlement in early 2022 tied to a 2017 accounting scandal.

  • Mattress Firm has filed for an IPO, but then asked the SEC to withdraw its registration in early January.
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