American Mattress bankruptcy case converts to Chapter 7

WILMINGTON, Del. — Bedding specialty retailer American Mattress‘ Chapter 11 bankruptcy case is now a Chapter 7 case.

Following a March 13 hearing, Judge Mary F. Walrath granted motions from the U.S. Trustee and the official committee of unsecured creditors and entered an order on March 16 converting the case in the U.S. Bankruptcy Court for the District of Delaware.

Chapter 11 is typically viewed as the reorganization chapter, while Chapter 7 is commonly referred to as the liquidation chapter.

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On Jan. 28, the official committee of unsecured creditors filed a motion to convert the Chapter 11 case to a case under Chapter 7. The creditors argued that American Mattress had not made meaningful progress toward reorganization, had not filed or circulated a plan and continues to operate without credible financial projections, a business plan or independent financial oversight.

A separate motion filed Jan. 30 by the U.S. Trustee asked the court to convert the case to Chapter 7 or to dismiss it entirely. In its motion, the Trustee argued that American Mattress has failed to pay rent for leased stores, failed to pay professional fees and has recorded $1.26 million in operating losses since November.

American Mattress filed for Chapter 11 protection in July 2025. When it filed, it had more than 95 stores in Illinois, Indiana, Michigan, Florida and Missouri. The initial filing only pertained to its stores in Illinois and Indiana.