Sealy runs a highly-leveraged balance sheet. It's current ratio is barely above 1 and it has a significant amount of long-term debt. Should sales turn south for a prolonged period, Sealy could face bankruptcy.
92% of Sealy sales are generated from the slowing and highly-competitive innerspring mattress segment. Tempur-pedic International (TPX) and Select Comfort (SCSS) may be able to fend their market share in the specialty bedding segment.