Tuft & Needle Calls For Dismissal Of Lawsuit Of Steinhoff Subsidiary Mattress Firm
PHOENIX, Dec. 19, 2017 (INNOVATIVEBEDS.COM) — As the latest move in the accelerating disruption of the traditional mattress industry, Tuft & Needle’s litigation counsel, Charles “Chip” Babcock of Jackson Walker LLP, sought dismissa of a federal lawsuit filed by Mattress Firm against Tuft & Needle in Houston, Texas. Tuft & Needle asks the court to decide whether Mattress Firm’s lawsuit is a thinly-veiled, strategic attempt by Mattress Firm to weaken its competition, the industry innovator and “bed-in-a-box” pioneer Tuft & Needle. Tuft & Needle believes it may have significant counter-claims against Mattress Firm and, potentially, its South Africa-based parent company, Steinhoff International Holdings NV, for anti-competitive misconduct, and has instructed Babcock to investigate. In 2016, global furniture giant Steinhoff paid $2.4 billion to acquire Mattress Firm, the United States’ biggest mattress chain, which now operates over 3,500 stores in 49 states, including former Sleepy’s and Sleep Train outlets. Last week, Steinhoff became engulfed in a financial scandal—its CEO, Markus Jooste, resigned amid fraud allegations, and he and other senior executives are under investigation for misconduct.
In a classic David vs. Goliath scenario, in October 2017 Steinhoff’s subsidiary Mattress Firm filed a lawsuit against Tuft & Needle, attacking the start-up’s modern, tongue-in-cheek