A LEGACY furniture chain with over 95 locations in the US has filed for Chapter 11 bankruptcy after 37 years.
Only half of the chain’s stores will be able to remain open, as a beloved business becomes the latest victim in the retail bloodbath.
A legacy furniture chain with over 95 locations in the US has filed for Chapter 11 bankruptcy after 37 years[/caption]
American Mattress is a well-known furniture chain based in suburban Chicago.
They have nearly 100 stores across states such as Illinois, Indiana, Michigan, Florida and Missouri.
However, a recent bankruptcy filing means that only about half of those locations will be left.
American Mattress was forced to file for Chapter 11 protection on Sunday in the U.S. Bankruptcy Court for the District of Delaware.
It is thought that 52 stores are set to close as a result, namely in Illinois and Indiana.
But those in Michigan, Florida and Missouri remain unaffected.
American Mattress was founded in 1988 in the Chicago area and has been family-owned and operated ever since.
Reports state that many individual stores remain profitable; however, struggling locations and unprofitable leases added to an overall slowdown.
Consumer uncertainty has also made the issue worse in some of its locations.
American Mattress has listed five major bedding manufacturers as some of its top unsecured creditors.
These include Adventure Mattress, Bedding Industries of America, Customatic Sleep Technologies, Serta/Simmons and Tempur‑Pedic.
Court documents show that American Mattress’ assets and liabilities are between $1 million and $10 million.
But American Mattress remains defiant in the face of this bankruptcy filing.
Its website says: “The sleep industry has changed over the past 30 years, but the American Mattress brand has never wavered from its original beginnings and remains a symbol for unmatched customer service and the highest quality product offerings.”
BRANDS HARD HIT BY BANKRUPTCIES
Many chains have struggled to adapt to a post-Covid retail landscape, with several companies filing for bankruptcy
JoAnn Fabrics and Crafts announced it would close all 800 stores after filing for bankruptcy twice in a year.
Hooters announced plans to file for Chapter 11 bankruptcy protection in February.
Liberated Brands announced that it would be closing all 122 retail locations for its boardsport fashion brands Quiksilver, Billabong, and Volcom.
Forever 21 shut down its headquarters after filing for bankruptcy and laying off 358 employees.
Macy’s announced major restructuring plans amid mass store closures.
FURNITURE FRENZY
Another furniture chain has found itself in the same situation as American Mattress.
Factory Mattress, known for selling several big-name brands, announced that it filed for bankruptcy on June 7.
The chain sells mattresses from several big brands, like Nextar, Lovett and Smartlife.
Factory Mattress is based in Austin, Texas, and will be forced to close down all four of its stores in the city.
Right now, massive liquidation sales are underway across all of these locations.
You can grab savings of up to 80% off as the chain tries to sell its inventory before closure time.
A timeline for closures has not yet been given.
