Bedding retailer Ortho Mattress has filed for Chapter 11 bankruptcy protection. The Van Nuys, California-based retailer, which manufactures its mattresses, estimated assets between $1,000,001 and $10 million versus estimated liabilities of $10,000,001 to $50 million to an estimated 50 to 99 creditors.
In a statement, Ortho Mattress announced a “strategic restructuring designed to strengthen its long-term independence, expand nationwide distribution and reinforce its commitment to manufacturing high-quality, factory-direct mattresses for all.”
The company has been manufacturing its own mattresses in Phoenix for 70 years in addition to operating multiple retail stores across Southern California.
The restructuring will position the company for more efficient customer satisfaction, reduce exposure to California’s growing regulatory and administrative burdens, and enable growth beyond its proven California customer base, the statement said.
Among its Top 20 unsecured creditors are E.S. Kluft Co. ($165,007.70), Simmons Manufacturing ($108,122.00), Enriquez Materials Quilting ($83,378.80) and Culp Ticking Inc. ($46,374.28).
Ortho Mattress currently operates 18 standalone stores, two warehouse/retail locations and one factory/retail location. However, at its peak, it operated approximately 80 showrooms. It reduced its footprint over the past four years, citing increasing inflation and higher post-COVID interest rates, which caused mattress sales to collapse nationwide.
The company believes it can successfully organize, and debtors intend to propose a plan of reorganization within 90 days of the petition date.
