BIG NEWS: Another Popular Furniture Chain Files For Chapter 11 Bankruptcy
According to The Street, A major bedding products retail chain, Metro Mattress, has filed for Chapter 11 bankruptcy protection as it restructures its business and plans to shut down several stores. The mattress retailer, based in Syracuse, New York, cited industry downturns and its expansion into new markets as key reasons for its financial distress.
Furniture Retailers Face Financial Challenges
Furniture and mattress retail chains have been grappling with financial hardships over the past two years due to a combination of high inflation, rising interest rates, and shifting consumer behaviors. As a result, many companies have been forced to file for Chapter 11 or Chapter 7 bankruptcy protection, leading to store closures.
High-end furniture maker Mitchell Gold + Bob Williams, for example, closed all 27 of its stores in 14 states and filed for Chapter 11 bankruptcy in September 2023, followed by a Chapter 7 liquidation. Similarly, Z Gallerie, another upscale furniture brand, filed for Chapter 11 protection in October 2023 due to rising supply chain and import costs that impacted its profitability.
Metro Mattress Restructuring and Store Closures
Metro Mattress, which operates about 70 locations across Upstate New York, Connecticut, Massachusetts, New Hampshire, and Rhode Island, filed for Chapter 11 bankruptcy on September 4, 2024. The company plans to focus on strengthening its core New York market while exiting the four other states in which it operates, according to a report by Furniture Today.
In its bankruptcy petition, Metro Mattress reported liabilities of $10 million to $50 million and assets valued between $1 million and $10 million. Despite the financial challenges, the company said it will continue its normal business operations in New York, where it has a strong customer base and business model.
CEO Statement and Future Plans
Metro Mattress CEO Dino Cifelli emphasized the company’s commitment to its New York market in a statement. “The company has a strong business model in our core New York market and will continue our normal business operations in that market,” Cifelli said. “We have made the tough decision to exit the New England market. This strategic step allows us, with the support of our vendors and loyal customer base, to pave the way to a robust future.”
The company, which was founded in 1976, has become a leading mattress specialty retailer in New York. Its decision to restructure and focus on its home state marks a significant shift in its business strategy as it navigates the challenges faced by the broader furniture industry.
