69-year-old furniture store chain files for Chapter 11 bankruptcy

69-year-old furniture store chain files for Chapter 11 bankruptcy
69-year-old furniture store chain files for Chapter 11 bankruptcy

Certain furniture and mattress retailers will face financial difficulties in 2026, after the industry found success in 2025.

The furniture industry showed positive sales results in 2025, as the top 100 retailers posted a combined sales increase of 0.9% to $51.2 billion, based on furniture, bedding and accessories, after a two-year decline, according to Furniture Today.

The US bed and mattress retail sector also performed well last year, undergoing a period of steady growth, with revenue increasing 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 difficulties and was forced to file for bankruptcy in early June.

Ortho Mattress files for Chapter 11 bankruptcy to restructure its debts.Shutterstock

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 between $1 million and $10 million in assets and between $10 million and $50 million in liabilities.

The debtor did not indicate any reason for filing for bankruptcy in his petition.

The Cerritos, California-based debtor’s largest creditors include ES Kluft & Co., which is owed more than $165,000; Simmons Manufacturing Co., owed more than $108,000; Mann Enterptrises Inc., owed more than $95,000; Warehouse Discount Center, owed more than $87,000; Enriquez Materials Quilting, who is owed more than $83,000; Mills Realty, owes more than $82,000; and Hawthorne Gateway LP, who are owed more than $73,000, according to court documents.

The debtor operates in California and Arizona

Ortho Mattress, founded in Gardena, California, in 1957, operates 23 retail locations in California and Arizona, according to its website.

At one point, the mattress and furniture chain had more than 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 historical timeline on its website.

The company purchased the assets of Simmons Mattress Gallery in 2006, moved all manufacturing to California in 2007, and expanded manufacturing to Arizona in 2018. It also moved its headquarters to Cerritos.

SuperNova Furniture files for bankruptcy

Another former 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, founded 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 their stores are doing well, while three have done poorly, according to Furniture Today. Filing for bankruptcy could give the company the opportunity to reject more onerous leases, according to the report.

The company continues to operate normally.

The retailer reorganizes and closes stores

A prolonged highway construction project near American Home Furniture & Mattress stores in Albuquerque and economic pressures, such as inflation and tariffs, resulted in the chain’s parent company filing for bankruptcy on March 4, according to its Chapter 11 reorganization update and customer FAQs on its website.

The owners of the 90-year-old furniture chain, AFC Acquisition Corporation, filed their petition with plans to reorganize their 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 orders from new and existing customers. All gift cards and guarantees remain valid.”

Related: Another popular brewery files for Chapter 11 bankruptcy

This story was originally published by TheStreet on June 3, 2026, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.

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