A US mattress retailer has been forced into Chapter 7 bankruptcy liquidation, marking the end of the 38-year-old family-owned business. The decision follows the conversion of its earlier Chapter 11 filing after the company failed to present a viable restructuring plan.
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A US bankruptcy court approved the move after creditors argued the company had made no meaningful progress towards recovery, citing ongoing losses, unpaid rent and a lack of financial oversight. The retailer reportedly accumulated over $1.2 million in operating losses since late 2025.
Based in Illinois, American Mattress operated 45 stores across four states. While the company claimed a potential buyer had expressed interest in acquiring its assets, the case was nonetheless converted to liquidation, placing its future beyond recovery.
The collapse reflects broader challenges across the furniture and home furnishings sector, where declining demand, a prolonged housing slowdown, inflation and rising costs have weakened sales and profitability. Industry data shows furniture sales fell in 2025, with further declines recorded at the start of 2026.
The case highlights growing financial strain within discretionary retail, as weakened consumer confidence continues to impact spending on big-ticket home goods.
Source: www.thestreet.com
