Friday, January 31, 2014

Don't Come On Down

"Bain buys into Bob’s Discount Furniture; Will acquire controlling stake in discounter" by Taryn Luna |  Globe Correspondent, December 31, 2013

Boston private equity firm Bain Capital has agreed to buy a majority stake in Bob’s Discount Furniture, the retailer known for television commercials featuring founder Bob Kaufman and his “no gimmick” sales pledge on merchandise like the Bob-O-Pedic mattress.

Bain will purchase a controlling interest of the Manchester, Conn., discount furniture business from another private equity firm for about $350 million, according to people with knowledge of the negotiations. Bain said Monday that it agreed to purchase the 47-store company with plans to expand its business into new markets.

The private equity firm has developed deep retail experience by purchasing many well-known companies. Now, it will take over a furniture chain that has bombarded television screens with quirky ads for more than 20 years….

Bob’s Discount Furniture has grown by about two stores a years since Kaufman, a former waterbed salesman, and his cousin, Gene Rosenberg, opened the first company store in Newington, Conn., in 1991….