filed for bankruptcy and ceased operations more than 30 years after its founding

A Mattress chain, born in Illinois in 1988 worried Chapter 11 protection in the United States to reorganize your finances.

The company operates 95 branches in several states across the country, including Florida, Michigan and Indiana. This is done under the name AFM Mattress Co.

American mattress, the renowned family chain for mattresses and furniture, has announced his entry into the process bankruptcy by filing a petition under Chapter 11 of the United States Bankruptcy Code.

Your financial situation is critical. His assets and liabilities are estimated at between $1 million and $10 million, according to the petition filed. She has between 100 and 199 creditors, including large mattress manufacturers.

The company, which has 95 locations in states including Illinois, Florida, Indiana, Michigan and Missouri, is currently recruiting Restructure your debts and preserve part of its operations.

American Mattress was founded in 1988 by Frank De Maio And Mike Kennatwo disillusioned employees of a family business that had been sold to a large corporation. His goal, the founders have said several times, is to maintain a culture of close, familiar and human interaction with customers.

Instead of a rigid corporate structure, the founders opted for a community bond. Over the years, the brand managed to establish itself as Customer service symboloffers high quality products and maintains its local identity.

In its bankruptcy petition filed in the Delaware District Bankruptcy Court in July 2025, The company declared assets and liabilities ranging from $1 million to $10 million. In addition, between 100 and 199 creditors were identified.

The most important include five mattress manufacturersto whom more than $2.06 million. The largest unsecured creditor is Adventure Mattress, a company founded in 2023, which is seeking more than $1.21 million from the company.

First of all, one of the most striking points of the process is the American mattress had not submitted a payment plan or a renovation project specifically in your request. This is important: Under Chapter 11, companies can reorganize to continue operating, but they need a plan that shows how they plan to pay their creditors in the future. Without a plan, the viability of restructuring is on hold.

Despite the bankruptcy The company has not announced the immediate closure of all of its stores nor a full liquidation. In fact, it continues to promote offers and run campaigns to attract customers. It also offers very attractive financing plans with 0% interest until 2031, a strategy likely aimed at maintaining sales and preserving buyer loyalty amid the financial crisis.

“Family” origins continue to be central to the corporate narrative. On its website, American Mattress expresses that the founders wanted to offer a different, more personal style of care, as opposed to the cold corporate model they had left behind. This culture has been maintained over the decades, even as the company has grown to dozens of branches.

Furthermore, despite the financial difficulties, The company had expansion plans. According to the company, it plans to open four new branches in Missouri this year. It is also significant that 20 new branches were added in 2023, which is evidence of a growth strategy that seemed to be working until recently.

Chapter 11 explained by American Mattress, allows them to maintain control of their assets while negotiating with creditors and reorganizing their financial structure. However, the lack of a recovery plan is a warning sign as it could complicate their restructuring if they do not present a clear and credible strategy.

In its statement to the public, the company did not want to make any blanket statements about future closures, but the media’s silence contrasts with active advertising campaigns. This could be interpreted as an attempt to maintain customer confidence while they negotiate a way out of the bankruptcy process.