AFM Mattress Company LLC has filed for bankruptcy. One of the leading mattress manufacturers in the United States has filed for Chapter 11 bankruptcy. This process offers the possibility of creating a reorganization plan that provides relief to the company, allowing it to continue operating while negotiations are ongoing. This process must be approved by creditors and the court.
The information lists both assets and liabilities between $1 million and $10 million, and is listed under the corporate name of American Mattress, AFM Mattress Company LLC, with an address listed in Elk Grove Village. American Mattress is a part of American history. The company began as a small, almost family-owned business and gradually expanded across the country to more than 2,000 stores nationwide.
“Treating customers and employees like family was replaced by big corporate policies”
“American Mattress was founded in 1988. Two co-workers from a local family owned mattress company became disheartened after the business was sold to a major corporation. The family owned culture quickly disappeared. Treating customers and employees like family was replaced by big corporate policies,” reads the statement at the company’s official website.
As is the case with some long-established, family-owned brands, they fail to adapt to the new consumer era. Indeed, one of AFM Mattress’s key turning points was the rise of digital brands like Casper, Purple, and Tuft & Needle. These companies were able to adapt to the changing consumer by offering high-quality mattresses at competitive prices, with simple online purchasing processes and direct home delivery.
The company has weathered economic changes as best it could
Furthermore, the company has weathered economic changes as best it could. On the one hand, the rising cost of key raw materials such as cotton and steel, which put pressure on profit margins. Added to this is the hyper-competitive market for the aforementioned companies, as well as online sales, which are currently one of the main enemies of local businesses.
On the other hand, the pandemic. 2020 was undoubtedly a turning point for everyone. Regardless of the context, the uncontrolled halt brought about by COVID-19 has left an indelible mark. In the case of American Mattress, it meant a halt in manufacturing and the subsequent closure of several branches. Sales weren’t initially a concern, but with the economic situation, the consequences were finally reflected in the year-end figures.
Comfort, and family unity are one of the company’s pillars
One of the company’s hallmarks is its sense of family. “The sleep industry has changed over the past 30 years, but the American Mattress brand has never wavered from its original beginnings and remains a symbol for unmatched customer service and the highest quality product offerings,” they detail in the website description. Family is undoubtedly its greatest slogan. Tranquility, comfort, and family unity are one of the company’s pillars.
“Today, American Mattress remains a locally owned business, with a strong culture of family and community. Visit us today and be treated like family!” the website describes. To date, the company has not issued any statements to the US media regarding its bankruptcy or announced any store closures.
