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Is Purple Mattress Going Out of Business?

ByOliver

Unfortunately, Purple’s share has fallen heavily. Therefore, it seems that the company is struggling to maintain its business.

Due to going out of business, Purple has to take sudden measures to return to a stable position. As a result, the price of its bedding is increasing, discouraging sellers from purchasing mattresses from Purple.

There are several reasons, like the mentioned one. Let’s read the article to find out why Purple business is going downward.

is Purple mattress going out of business

What happened to the Purple mattress company?

Purple Innovations, Inc. stock has fallen around 80 percent compared to the share’s price in February 2021. Therefore, we can assume that Purple is going out of business.

Let’s figure out what is going wrong with the Purple mattress company.

The mischief of the Purple mattress company started during the pandemic. In the middle of the COVID-19 pandemic, in February 2021, Purple was at the top of the game.

However, the market demand was very high compared to Purple’s production capacity. And due to COVID-19, the raw material supply had a shortage.

Not to mention transportation. Every company had to face the hassle of transportation during the pandemic.

Production limitations, raw material supply shortages, and transportation problems had extended the delivery time of Purple mattresses.

But the biggest reason Purple has fallen was the temporary shutdown of its production facility in the middle of 2021. The shutdown was followed by the death of a woman in the production facility.

The woman died when the machine pulled her into it while operating it. Purple had to take new safety measures for that incident.

First of all, COVID-19 was giving no room to deliver mattresses on time. And then, the temporary shutdown had thrown Purple into an ugly situation.

When Purple reopened its production facility, it was too late. It lost an estimated 50 million in sales at the end of 2021. And it declined further in 2022.

RELATED: Who Owns Purple Mattress

what happened to the Purple mattress company

What will happen to Purple?

As of 2023, Purple is counting irrecoverable damage. The company is going through uncertainty. Shareholders are withdrawing their money. In a word, it is a total mess.

Purple has been wholesaling its mattresses at a high price to compensate for the damage. However, the mattress market is full of competitors, and elevated pricing is a deficient strategy.

Therefore, Purple’s sales have gone down more than ever. In this situation, the company has taken an efficient step. Let’s find out what action Purple has taken.

Purple is a public company traded as NASDAQ: PRPL. Coliseum Capital Management is the largest shareholder of this company.

The management firm has proposed to buy all the outstanding capital stock. Purchasing all the capital stock will turn Purple into a private company.

Purple may become a private company any time sooner. However, it may help the company to get out of the struggle it is facing now.

Who bought out Purple Mattress?

No one has bought out the Purple mattress company till now. It is still under the control of its founders.

On 23 September 2015, two brothers named Terry Pearce and Tony Pearce started a mattress manufacturing company in Utah, United States. The two began a campaign, Kickstart, where they sold king-size beds.

Until now, Tony Pearce and Terry Pearce are the owners of Purple Mattress. However, if the downfall of the mattress company continues, the two would have no choice but to sell it to another company.

And the probable new owner of Purple mattress is Coliseum Capital Management. This firm is the largest stockholder of Purple and has appealed to take over all the stock. Eventually, it would turn Purple into a private company.

RELATED: Is Casper Mattress Going Out of Business

What are the cons of a Purple mattress?

It is observed that Purple has been losing customers since the middle of 2021. And it has continued till now. So, why are people getting diverted from this company’s mattresses?

Well, the answer is simple. Purple’s mattress quality has disadvantages that have triggered a reduction in customers. Let’s learn some of the cons that mattress reviewers are talking about this company these days:

  • Overpriced premium mattresses
  • Weight of Purple mattresses are too heavy
  • Mattress covers are not washable
  • Too soft, causing back pain

Sources

This is Oliver, founder and head writer of BeddingAsk. As a manager and marketer, Oliver's experience has been invaluable in helping us create the perfect bedding solutions for our customers.