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Certain furniture and mattress retailers are facing financial distress in 2026, after the industry had success in 2025.
The furniture industry showed positive sales results in 2025, as the Top 100 retailers posted a 0.9% combined sales increase to $51.2 billion, based on furniture, bedding, and accessories, after a two-year decline, according toFurniture Today.
bed and mattress stores sector also performed well last year, navigating a period of steady growth, with revenue rising by 1.3% to $28.4 billion year over year in 2025, according toIbisWorldanalysis.
Despite favorable sales and revenue results in 2025, a classic retailer faced distress and was forced to file for bankruptcy protection as June began.
Iconic mattress and furniture retail chainOrtho Mattressfiled forChapter 11 bankruptcyto reorganize its business.
The 69-year-old retailer filed its Subchapter V petition in the U.S.
Bankruptcy Court for the Central District of California in Woodland Hills on June 1, listing $1 million to $10 million in assets and $10 million to $50 million in liabilities.
The debtor did not state a reason for filing for bankruptcy in its petition.
The Cerritos, Calif.-based debtor's largest creditors include E.S.
Kluft & Co., owed over $165,000; Simmons Manufacturing Co., owed over $108,000; Mann Enterptrises Inc., owed over $95,000; Warehouse Discount Center, owed over $87,000; Enriquez Materials Quilting, owed over $83,000; Mills Realty, owed over $82,000; and Hawthorne Gateway LP, owed over $73,000, according tocourt papers.
Ortho Mattress, which was founded in Gardena, Calif., in 1957, operates 23 retail locations in California and Arizona, according to its website.
At one time, themattress and furniture chainhad over 60 locations, according to its website.
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