Bankrupt mattress retail chain American Mattress is facing a Chapter 7 bankruptcy threat from its unsecured creditors, who have filed a motion to convert the retailer's Chapter 11 reorganization to Chapter 7 liquidation. The Official Committee of Unsecured Creditors alleges that the retailer has not made significant progress toward reorganization, had not filed a reorganization plan, had operated without credible financial projections, a business plan or independent financial oversight. American Mattresses, which operates 45 locations in four states, objected to the Chapter 7 conversion filings with an objection in the U.S. Bankruptcy Court for the District of Delaware on March 3, 2026 claiming a buyer has offered to purchase its assets and pay all cure costs. The company's financial distress matches distress in the furniture business nationwide, with sales declining 0.82% for 2025 compared to 2024 unadjusted.