Ortho Mattress files for Chapter 11 bankruptcy despite sector recovery
The 69-year-old furniture chain joins a growing list of US retailers facing financial distress in 2026, even as industry-wide sales showed modest growth in the previous year.
Ortho Mattress, a 69-year-old furniture and mattress retailer based in Cerritos, California, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Central District of California on June 1. The company listed assets between $1 million and $10 million and liabilities between $10 million and $50 million. The filing was made under Subchapter V, a provision designed to help small businesses reorganise.
The petition, lodged in Woodland Hills, did not specify a reason for the distress. Ortho Mattress operates 23 retail locations across California and Arizona, having previously reduced its footprint from more than 60 locations. The Cerritos-based debtor’s largest creditors include E.S. Kluft & Co., owed over $165,000; Simmons Manufacturing Co., owed over $108,000; and Mann Enterprises Inc., owed over $95,000, according to court documents.
The filing stands in contrast to broader industry trends in 2025. According to Furniture Today, the Top 100 US furniture retailers posted a 0.9% combined sales increase to $51.2 billion, ending a two-year decline. Similarly, IbisWorld analysis indicated that revenue in the US bed and mattress stores sector rose by 1.3% to $28.4 billion year-on-year in 2025.
Ortho Mattress has a long history in the sector, founded in Gardena, California, in 1957. It merged with W. Simmons Industries in 1996, was renamed WE Bedding in 1997, and was acquired by Hugh Street Holdings in 1998. The company adopted its current name in 2004 and moved its headquarters to Cerritos after relocating manufacturing operations to California in 2007 and expanding to Arizona in 2018.
The retailer is not alone in facing challenges in the current market. SuperNova Furniture, based in Humble, Texas, filed for Chapter 11 on April 15 to reorganise its business. Additionally, American Home Furniture & Mattress, a 90-year-old chain in Albuquerque, saw its parent company file for bankruptcy on March 4, citing inflation, tariffs, and construction disruptions as key pressures.
