by American Mattress, a specialty bedding retailer based in Illinois, has filed for Chapter 11 bankruptcy protection as it works to restructure operations and address mounting financial pressures.
Key Points:
- Filing Details:
- Filed under the corporate name AFM Mattress Co., LLC in Delaware on Sunday
- Bankruptcy affects 52 stores located in Illinois and Indiana
- Stores in Michigan, Florida, and Missouri are not impacted and remain non-debtor affiliates
- Financial Overview:
- Assets and liabilities estimated between $1 million and $10 million
- Lists 100 to 199 creditors
- Top unsecured creditors include:
- Adventure Mattress
- Serta/Simmons
- Tempur-Pedic
- Bedding Industries of America
- Customatic Sleep Technologies
- Total owed: $2.06 million
- Reasons for Filing:
- Slowdown in consumer spending amid election-year uncertainty
- Costly line resets from key vendors
- Nearly $3 million spent on showroom remerchandising
- Underperforming stores weighed down overall profitability despite many locations being financially healthy
- Operational Impact:
- No layoffs or store closures announced
- Company seeking court approval to maintain regular business operations, including:
- Payroll
- Utility payments
- Taxes
- Insurance
- Next Steps:
- Next court hearing scheduled for August 4
- American Mattress still plans to open four new stores in Missouri, per its website
The bankruptcy filing aims to allow the company to shed unprofitable leases and stabilize its business amid a challenging retail environment.
