Home Furnishings Association member Mor Furniture for Less has sold its 36-store furniture chain to Healthcare Co., Ltd., a Chinese home furnishings conglomerate dipping its toes into the U.S. market for the first time.
California-based Mor Furniture has six stores in and around San Diego and has expanded into six other states throughout the West. The company’s roots can be traced back to founder Richard Haux Sr. and the opening of a waterbed store in 1977. The company, which remained family-owned for 42 years, had grown to bring in roughly $310 million in annual sales. Healthcare Co. is engaged in the manufacture and sales of memory sponge mattresses and pillows.
Haux’s son, Richard Haux Jr., announced the sale late last month. “Healthcare Co., is an ideal partner with deep roots in the mattress business and they share the same company values as Mor Furniture,” Haux Jr., CEO of Mor, said in a statement. “With some of our original investors nearing retirement age, the timing is perfect to bring on a new partner with a fresh perspective for the next steps in our journey.”
Keeping Mor Furniture name
Healthcare Co. said it’s paying $68.4 million for the retailer and expected to close the deal by the end of October. A Healthcare Co. representative said shoppers shouldn’t expect any immediate changes to the stores, which will retain the More Furniture For Less brand.
Healthcare Co. is best known as a mattress manufacturer and the owner of Mlily USA. But the public company, which has a market cap of more than $5 billion, is a global home furnishings giant with 20 holding companies worldwide. The purchase of Mor Furniture is the first retail acquisition the company has made in the United States, Healthcare said in a statement.
The company said it hopes the Mor purchase will help it gain a better understanding of U.S. retailers and customers.
“The direct day-to-day contact with consumers through Mor’s vibrant retail locations gives us the opportunity to gather critical information about consumer shopping behavior in the U.S.,” said James Ni, chairman and chief executive officer of Healthcare Co., in a statement. “Direct consumer interaction will help us hone our OEM (original equipment manufacturer) product development and better serve our growing network of customers throughout the world.”