Major mattress chain converts to Chapter 7 bankruptcy liquidation

The major mattress chain that has recently converted to Chapter 7 liquidation is American Mattress.​

What happened

• American Mattress originally filed for Chapter 11 bankruptcy protection in July 2025 to reorganize its debts.​

• In March 2026, the case was converted from Chapter 11 to Chapter 7, which is a liquidation proceeding rather than a reorganization.​

• As part of that conversion, all American Mattress stores in Illinois and Indiana were ordered closed as of March 10, 2026.​

Company profile and scale

• American Mattress is a sleep specialty chain that has operated more than 95 stores across Illinois, Indiana, Michigan, Florida and Missouri.​

• When it filed Chapter 11, it reported estimated assets and liabilities both in the range of 1 million to 10 million dollars, with between 100 and 199 creditors.​

Impact on suppliers and creditors

• The retailer listed at least five major mattress manufacturers among its top unsecured creditors: Adventure Mattress, Bedding Industries of America, Customatic Sleep Technologies, Serta/Simmons, and Tempur‑Pedic.​

• Because the case is now in Chapter 7, a trustee will be appointed to liquidate assets and distribute proceeds to creditors according to bankruptcy priority rules, which typically results in limited recovery for unsecured trade creditors.​