When a company enters Chapter 11 bankruptcy, it often shares a plan. That plan represents what the company hopes will happen.
In some cases, that proposal contains information about potential funding or a company willing to buy the business in bankruptcy. At other times, the plan may share information and turning debt into equity with creditors, or some other financial method to create breathing room.
Sometimes the bankruptcy plan comes more in the form of bullet points, or a list of things the company wants to occur.
That was the case with Metro Mattress Corp., a regional mattress seller that filed for Chapter 11 bankruptcy protection in September 2024. At the time of the filing, the company has planned to close about 30 stores to focus on the roughly 40 locations that would remain.
Those efforts have failed, and the company filed a motion on Oct. 3 with the U.S. Bankruptcy Court for the Northern District of New York.
In the court filing, “The sleep retailer said it can no longer sustain operations after failing to secure a buyer and running out of funds to cover advertising and post-petition expenses,” Furniture Today reported.
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Filing Date: September 4, 2024
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Court: U.S. Bankruptcy Court, Northern District of New York
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Case Number: 5:24-bk-30773
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Assets: Less than $9 million
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Liabilities: More than $23 million
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Creditors: Approximately 100 to 199
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Largest Creditor: Tempur-Pedic, owed nearly $2 million
Source: PacerMonitor
Before its Chapter 11 bankruptcy filing, Metro Mattress shared a simple description of its business on its website.
At Metro Mattress, we’ve been committed to providing our customers with the highest quality mattresses at a tremendous value since 1978.
The company continued.
“Metro Mattress is the leading mattress retailer in New York state providing customers with a broad selection of brand-name mattresses to fit all our customers’ needs. We are excited to bring our dedication and unmatched customer service to Connecticut, New Hampshire, Massachusetts, and Rhode Island.”
The company prided itself on being a customer-first business that helped people find the right mattress for their needs.
“You can count on our staff to be knowledgeable and professional, with extensive hours of mattress and adjustable base training. When you come to us, you can count on a consistent, informed, and easy shopping experience, with dedicated professionals who’ll take the time to help you make the right decision on a mattress that’ll be perfect for you. We all have the same thing in mind: being the best mattress company for your needs,” the company shared.
Related: 52-year-old discount chain closing locations in multiple states
That “About Us” section has been removed from the company’s website, but can be found on archived versions of the site.
Metro Mattress’ 47-year history will soon come to an end. Technically, the company needs court permission to shut down its remaining stores, but a going-out-of-business sale has already begun on its website.
Metro Mattress plans to consolidate all of its remaining inventory to five or six stores to run a going-out-of-business sale.
“Metro Mattress said it had contacted 21 potential buyers, including financial and strategic investors, in an attempt to sell the company, but none submitted offers. One financial buyer expressed continued interest as recently as Sept. 30, but no definitive deal materialized, according to the filing,” Furniture Today reported.
The plan, assuming the court approves it, will be for a five-week shutdown sale, after which the company would vacate all remaining locations.
Metro Mattress’ website has already been promoting a going-out-of-business sale with prices up to 70% off.
Metro Mattress operational status and store closures
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Store Count at Filing: 69 locations across five states.
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Closure Strategy: Initially closed underperforming New England stores to focus on New York market.
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Current Status: All remaining stores now seeking closure.
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Reason for Closure: Unable to secure a buyer and lack of funds for advertising and post-petition expenses.
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Liquidation Plan: Consolidate inventory into five-six stores for a five-week. liquidation sale, followed by bulk sales of remaining merchandise and equipment.
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Court Approval: Pending for final liquidation and closure.
Related: Technology retailer closing over 1,000 stores, no bankruptcy
This story was originally reported by TheStreet on Oct 8, 2025, where it first appeared in the Retail, Shopping Malls, Chain Stores News & Analysis section. Add TheStreet as a Preferred Source by clicking here.