Metro Mattress, a 69-store bedding retailer with stores in five states, filed for Chapter 11 bankruptcy protection on Wednesday in federal court.
The company cited expansion into new markets and recent downturns in the industry as the main reasons for the filing and plans to continue operating its stores in New York while shutting down its locations in New England. It also hinted that more stores may close in the near future.
Metro Mattress estimated its assets at $1 million to $10 million and liabilities at $10 million to $50 million, with creditors ranging from 100 to 199. With listed assets of more than $8.88 million, it listed total liabilities of about $23.7 million.
The company says that there will be no disruptions to its operations and that the company will continue to honor its existing warranties and commitments.
