69-year-old furniture store chain files for Chapter 11 bankruptcy
In 2025, the furniture and mattress industry experienced a positive upturn, with the Top 100 retailers seeing a 0.9% increase in combined sales, reaching $51.2 billion. This growth came after a two-year decline, signaling a promising trend for the sector. Additionally, the U.S. bed and mattress stores sector also saw revenue rise by 1.3% to $28.4 billion year over year in 2025, showing steady growth, according to IbisWorld analysis.
However, despite the overall success of the industry in 2025, some key players faced financial distress in 2026. One such retailer, Ortho Mattress, filed for Chapter 11 bankruptcy in June to restructure its business. The 69-year-old company listed assets between $1 million to $10 million and liabilities between $10 million to $50 million in its filing. The reasons for the bankruptcy filing were not explicitly stated in the petition.
Ortho Mattress, based in Cerritos, California, operates 23 retail locations in California and Arizona. The company has a rich history, having gone through various mergers and acquisitions over the years. Despite its long-standing presence in the market, financial challenges led to the decision to seek bankruptcy protection.
In a similar vein, another regional furniture chain, SuperNova Furniture, based in Humble, Texas, also filed for Chapter 11 bankruptcy protection in April to reorganize its business. The company operates several stores in Texas and faced challenges with some locations struggling to perform well. The bankruptcy filing could provide an opportunity for the company to address lease issues and restructure its operations.
Additionally, American Home Furniture & Mattress, a 90-year-old furniture chain, faced economic pressures and filed for bankruptcy in March. The company’s owners sought to reorganize the business, close certain stores, and continue operating amidst challenges such as inflation and tariffs.
Despite these setbacks, all three companies have expressed their commitment to continue operating and serving customers. They emphasized that the bankruptcy filings were part of strategic efforts to address financial challenges and ensure the long-term sustainability of their businesses.
As the furniture and mattress industry navigates through financial distress among key retailers, it underscores the importance of adaptation and resilience in a rapidly changing market landscape. By taking proactive measures to restructure and reorganize, these companies aim to emerge stronger and more competitive in the evolving retail environment.
