SCC takes stake in Sleepout
TORONTO – Sleep Country Canada Holdings (SCC) expanded its presence in the consumer’s bedroom with an ownership stake in Sleepout Inc., a Canadian start-up also based here specializing in portable blackout curtains. As demand for sleep wellness products grows, the publicly held retailer believes its investment will support Sleepout’s entry to the market and its mission of helping people get a better night’s sleep.
SCC paid $500,000 for a 25% in the direct-to-consumer business.
In a statement, the company noted Sleepout was born out of the pandemic as well as its co-founder’s frustration. Like nearly a third of Canadians, co-founder Mark Coombs suffered from insomnia and found total darkness was the best solution to get a restful night’s sleep. After years of trying different and ineffective DIY solutions, Coombs and co-founder Hannah Brennen developed the Sleepout Curtain, a patented portable blackout curtain that installs anywhere in seconds to completely darken any room.
“We are thrilled to receive this investment from Sleep Country, Canada’s leading sleep retailer,” Sleepout chief executive officer Mark Coombs said. “We couldn’t have asked for a better investment partner. With Sleep Country’s support, Sleepout will be able to cover new ground by achieving larger scale and advancing our joint mission of helping North Americans sleep better.”
The 25% stake represents Sleep Country’s first-ever minority investment and should help Sleepout as they move into their next phase of growth. Logistical assistance with warehousing and supply chain, alongside business relationships that can be built from this partnership will be instrumental in Sleepout’s ability to expand to meet rising demand.
The company has already established a customer base through one of Kickstarter’s top campaigns that ran from June to July 2021 and sold over 3,000 units. After Kickstarter, Sleepout launched a crowdfunding campaign on Indiegogo that generated additional revenue and customer interest.
“We are excited to invest in Sleepout, especially the two founders Mark and Hannah, to help them take their premium blackout curtain to market. We believe this product is a best-in-class solution for one of the most common sleep problems and will help people get a longer and better night’s sleep. We look forward to fuelling their growth with our market expertise and expanding our portfolio of online sleep wellness accessories to be sold digitally across North America,” SCC president Stewart Schaefer said.
“Our investment supports them, and our strategy to provide customers with seamless access to the world’s best and most innovative sleep products that we believe will help transform their lives with the power of sleep,” he added.
Sustainably designed with Greenguard and OEKO-TEX certified blackout fabric, the Sleepout Curtain is effective at keeping out light. It temporarily adheres to any window using industrial strength locking suction cups and blocks extra light with Sleepout Pads: a non-damaging adhesive technology designed specifically to block light bleeds. The easy-to-install and remove kit packs into a reusable carrying bag that can fit into a backpack or suitcase, making it the perfect blackout solution for home and travel.
Sleepout’s commitment to the environment goes beyond their use of sustainable manufacturing and ethical business practices. Sleepout makes a positive impact on the planet with a multi-faceted approach to sustainability. They purchase carbon offsets (split between protecting old-growth forests and removing carbon from the atmosphere), design products to maximize longevity and minimize packaging, and through their partnership with The Eden Project, a tree is planted for every Sleepout Curtain sold.
“As a small company, we want to lead by example and prove it is possible to develop innovative solutions to everyday problems without compromising on the health of the planet. Through our journey in becoming the world’s leading portable blackout curtain we want to do good for the environment and leave it better than we found it,” Sleepout chief operating officer Hannah Brennen said.
Photos courtesy of CNW Group/Sleepout/Mark Coombs
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