During a two-week evidentiary hearing in November, the FTC sought to persuade Judge Eskridge that the merger posed a significant threat to fair competition. However, Tempur Sealy has countered these claims, making concessions to address regulators’ concerns.
Tempur Sealy’s Concessions to Secure Approval
In an effort to appease antitrust regulators, Tempur Sealy agreed to sell 176 Mattress Firm stores and seven distribution centers to Mattress Warehouse. The company also pledged to maintain space for rival brands in 43% of premium product slots in Mattress Firm stores—an increase from its previous offer of 28%.
Despite these commitments, the FTC dismissed them as “unenforceable promises”, arguing that Tempur Sealy could walk back its pledges at any time.
Next Steps in the Legal Battle
While the court’s decision represents a major win for Tempur Sealy and Mattress Firm, the FTC may still challenge the ruling in the Fifth Circuit. Additionally, Tempur Sealy and Mattress Firm are separately challenging the constitutionality of the FTC’s in-house review process—a case also being heard by Judge Eskridge.
