Certain furniture and mattress retailers are facing financial distress in 2026, after the industry had success in 2025.
The furniture industry showed positive sales results in 2025, as the Top 100 retailers posted a 0.9% combined sales increase to $51.2 billion, based on furniture, bedding, and accessories, after a two-year decline, according to Furniture Today.
The U.S. bed and mattress stores sector also performed well last year, navigating a period of steady growth, with revenue rising by 1.3% to $28.4 billion year over year in 2025, according to IbisWorld analysis.
Despite favorable sales and revenue results in 2025, Ortho Mattress faced distress and was forced to file for bankruptcy protection as June began.
Ortho Mattress files for bankruptcy
Iconic mattress and furniture retail chain Ortho Mattress filed for Chapter 11 bankruptcy to reorganize its business.
The 69-year-old retailer filed its Subchapter V petition in the U.S. Bankruptcy Court for the Central District of California in Woodland Hills on June 1, listing $1 million to $10 million in assets and $10 million to $50 million in liabilities.
The debtor did not state a reason for filing for bankruptcy in its petition.
The Cerritos, Calif.-based debtor’s largest creditors include E.S. Kluft & Co., owed over $165,000; Simmons Manufacturing Co., owed over $108,000; Mann Enterptrises Inc., owed over $95,000; Warehouse Discount Center, owed over $87,000; Enriquez Materials Quilting, owed over $83,000; Mills Realty, owed over $82,000; and Hawthorne Gateway LP, owed over $73,000, according to court papers.
Debtor operates in California and Arizona
Ortho Mattress, which was founded in Gardena, Calif., in 1957, operates 23 retail locations in California and Arizona, according to its website.
At one time, the mattress and furniture chain had over 60 locations, according to its website.
The retailer merged with W. Simmons Industries in 1996, was renamed WE Bedding in 1997, and was acquired by Hugh Street Holdings in 1998. The company was renamed Ortho Mattress in 2004, according to a history timeline on its website.
The company bought the assets of Simmons Mattress Gallery in 2006, moved all manufacturing to California in 2007, and expanded manufacturing to Arizona in 2018. It also relocated its headquarters to Cerritos.
SuperNova Furniture files bankruptcy
Another longtime regional furniture chain, Humble, Texas-based SuperNova Furniture, filed for Chapter 11 bankruptcy protection to reorganize its business on April 15, according to PacerMonitor.
SuperNova Furniture, established about 40 years ago by founder Ana Abrahams, operates stores at Deerbrook Mall in Humble, Texas; Katy, Texas; and Rosenberg, Texas; along with three stores in Houston and a distribution center, also in Houston.
The chain’s owners said three of its stores are doing well, while three have struggled, according to Furniture Today. The bankruptcy filing could allow the company the opportunity to reject more onerous leases, according to the report.
The company continues to operate as usual.
Retailer reorganizes, closes stores
A prolonged freeway construction project near American Home Furniture & Mattress‘ Albuquerque stores and economic pressures, such as inflation and tariffs, resulted in the chain’s parent filing for bankruptcy on March 4, according to its Chapter 11 reorganization update and customer FAQs on its website.
The 90-year-old furniture chain’s owners, AFC Acquisition Corporation, filed its petition with plans to reorganize its business, close certain stores, and continue operating, according to Inforuptcy.
“We are not going out of business,” the company said in a message on its website. “Our Albuquerque locations remain open, and we continue to fulfill all existing and new customer orders. All gift cards and warranties remain valid.”
Related: Another popular brewery files for Chapter 11 bankruptcy
This story was originally published by TheStreet on Jun 3, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.