TSI looks for “financially strong” business partners and must have “trust and confidence” in their business plans, officials said.
The company released a 31-page business update that included a look at the retail environment. One of those pages is devoted to Mattress Firm.
On that page, TSI provided an update on litigation with Mattress Firm.
“Both parties have had discussions and have agreed to 30-day stays on the active litigation between them to discuss potential settlement,” the update says. “Those 30-day stays expire in mid-February. There can be no assurance any settlement of the litigation will result from these discussions.”
Also on that page TSI outlined the criteria it would use to evaluate a business relationship with Mattress Firm – or any other potential partner.
“Consistent with prior communications, Tempur Sealy has four criteria for evaluating any potential partners,” the company said. Those are:
- Financially strong counter-party.
- Strategically aligned.
- Trust and confidence in business plan.
- Durability of the relationship.
Looking at other retailers, TSI noted that it has agreed to provide up to $14 million in debtor-in-possession financing to facilitate Innovative Mattress Solutions’ bankruptcy process and is “actively reviewing strategic alternatives related to IMS during its bankruptcy process.”
And it said that it expects Sears to “operate on a smaller store base.”
“The retail environment is changing and consumers are changing,” TSI said in its presentation. “To win today’s consumer, retail must change, too.”