Largest shareholder of mattress seller Tempur Sealy asks for CEO to be removed

NEW YORK – Tempur Sealy's largest shareholder wants the mattress maker to dump CEO Mark Sarvary, saying he is mismanaging the company.

H Partners Management LLC said in a letter Tuesday that profit margins have declined at Tempur Sealy and its stock has not done as well as competitors' shares in the last three years.

The New York-based investment firm said it has already identified potential CEO replacements, but did not name them. H Partners, which has a 10 percent stake in Tempur Sealy, also wants a seat on the company's board.

A representative for Tempur Sealy did not immediately respond to a request for comment.

The company, based in Lexington, Kentucky, makes mattresses under the Tempur-Pedic, Stearns & Foster and Sealy brand names.

H Partners has also invested in theme park operator Six Flags. The investment firm said it helped Six Flags recruit a new CEO five years ago.

Shares of Tempur Sealy International Inc. rose 41 cents to $56.03 in late morning trading Tuesday. They have gained about 16 percent in the last 12 months.