A major 38-year-old mattress chain is suddenly closing every single store

When money feels tight, people don’t rush out to replace their bed even when they know it’s giving up on them. Instead, they wait and try to put it off another year. And then, another year. That habit, across millions of households, is clearly catching up to businesses in the mattress industry, as American Mattress is set to shut down officially.

How the long-running chain hit the end

This week, a judge of the U.S. Bankruptcy Court for the District of Delaware converted the company’s case from Chapter 11 to Chapter 7 liquidation, which is basically the final stop in its fight to keep its doors open.

The 38-year-old, family-owned retailer had already been struggling, closing stores quietly, posting “temporarily closed” signs, and dealing with cash flow issues. Behind the scenes, it was also falling behind on rent, failing to pay professional fees, and losing over $1.2 million in operations since November.

Creditors pushed for liquidation, saying there was no real plan to recover. At that point, the outcome was hard to avoid.

It’s not just American Mattress

This is not exactly a company problem. The entire furniture and home retail space has been under pressure for a while now.

Other companies have already filed for bankruptcy or started shutting down stores, including major chains like American Signature Furniture.

The numbers are showing it already. In 2025, furniture sales dipped 0.82%. And if early 2026 numbers are anything to go by, the decline has not ceased.

Why people are cutting back on furniture

One of the reasons the entire furniture industry has been struggling is the slow pace at which the housing market has been moving, as fewer people relocate these days. Inflation is also up and everything costs more. More than ever, people are picky about spending. So, guess what gets pushed down the list?

Mattresses and other furniture are almost the last thing on the average American’s mind at the moment, as they are the easiest purchases to procrastinate.

If your phone develops a problem, you fix or replace it immediately. If your car has issues, you deal with it. But a mattress just does not carry the same sense of urgency. 

Furniture is what economists call “deferrable spending.” Really just a fancy way of saying:

“People will absolutely avoid buying this if they can.”

Your shopping habits are more powerful than you think

The decision to shut down American Mattress was not made overnight. When you think about it, it is the result of small decisions stacking up. Every “I’ll keep managing” and “Not right now” have led to this moment where a brand that has been around for almost four decades is disappearing. 

If you never knew that consumer power is a thing, this should tell you that.

Sources: The Street, Yahoo Finance