NEW YORK CITY -- April 23, 2020 -- With home furnishing sales down 24.6 percent in March, and the March Mattress Retailer Survey predicting Q2 sales down by 50 percent, retailers and service providers are speaking up about the timing of a current antidumping petition. The petition, filed on March 31, 2020 by Brooklyn Bedding, Corsicana Mattress Company, Elite Comfort Solutions, FXI Inc., Innocor Inc., Kolcraft Enterprises Inc., Leggett & Platt Incorporated, and others, could damage the industry even further.
As of April 21, 2020, the Department of Commerce (DoC) chose not to investigate “standing”—which means petitioners need to represent more than 50 percent of the domestic industry to proceed. Ashley Furniture and Classic Brands both filed standing arguments with the DoC, hoping a more representative poll would be taken. The petitioners used production data from the 2019 China case from 29 US producers to claim standing for the current petition, though 347 total producers were identified.
Eric Emerson, chair of the International Trade and Investment Group and partner at Steptoe & Johnson LLP said, “We’re surprised at the Department’s decision. Using the same data sources the domestic industry itself used in the China investigation and some basic arithmetic, it’s clear that the Petition didn’t have the necessary level of support to avoid polling.”
Although an examination of standing will not occur, members of the mattress industry can still voice their opinions on the petition. The petitioners can choose to withdraw the petition themselves until the DoC determination date in late September.
Since they will not be polled by the DoC, a group of retailers, many who are not members of the AMA, are voicing their disapproval of the petition. They hope that the petitioners will take the state of the industry into account and pull the petition. The AMA made a compilation of video clips sent to them by retailers who are tracking the antidumping proceedings.
Dr. Craig Walker of Gil’s Furniture and Sleep Store, a small family-owned furniture and specialty bedding retailer, said, “This current petition proposal is absolutely thoughtless. It just doesn’t take into account the reality of the economics of our store…there is no dumping here. These companies meet the needs of individual customers.” He ends by saying, “I absolutely am opposed to any regulation of an existing model that is working for us.”
Another quote read, “My name is Robert Handley. Along with Abel Elizondo, I am owner of MattressRX out of Boise, Idaho; a locally owned and operated independent mattress retail store with two locations. We would ask the Petitioners to please support our eight employees and our struggling industry by withdrawing this petition. It is damaging to our industry and especially damaging to small independents like MattressRX. Our ability to survive the economic realities of 2020 depends on this petition being withdrawn.”
David Smith, from Mattress Depot USA, a chain of 26 retail stores in Washington, said, “I’m asking at this time that we postpone any hearings on the antidumping, as this is clearly not the time to be dealing with this issue… I have taken multiple calls and orders for recovery centers, hospitals, and we have already run into a roadblock with our supplies with some of our local factories being shut down. To disrupt a supply chain during a pandemic crisis like this is unconstitutional…so please, on behalf of Mattress Depot, our 80 plus employees, let’s please shelve this for another time.”
Along with retailers, shipping and logistics companies would also suffer if the petition were to be passed. Barry Bernard, president of Ohio Intermodal Services, said, “On behalf of my 200 employees and independent contractors, I implore the petitioners to stop the petition. They have the power to help my business survive during these tough times. Please support us.”
Based on import data that proves aggregate mattress imports in the named countries have only increased by 2.5 percent from 2018 to 2019, the American Mattress Alliance (AMA) believes the petition is unnecessary and ill-timed.
No determinations on dumping have been made at this time. According to a fact sheet released by the International Trade Administration, “The U.S. International Trade Commission (ITC) is scheduled to make its preliminary injury determinations on or before May 15, 2020. If the ITC determines that there is a reasonable indication that imports of mattresses from any of the eight countries materially injure, or threaten material injury to, the domestic industry, the investigations will continue…”
The AMA does not believe dumping is occurring and wants to continue to hear from retailers worried about how the petition will impact their business. To have your voice heard, or for any questions about the petition, please contact the AMA at info@americanmattressalliance.org.
About American Mattress Alliance
The American Mattress Alliance exists to provide high-quality products to American consumers with an emphasis on innovation and accessibility. Members include City Furniture, American Furniture Warehouse, El Dorado Furniture, Malouf, Classic Brands, Mattress Depot, RC Willey, Mantua, BedTech, Zinus USA, Maven, Mlily USA, and others. The American Mattress Alliance was created in response to an antidumping petition filed on March 31, 2020. Learn more at americanmattressalliance.org.
