Texas bedding retailer files for Chapter 11 protection

AUSTIN, Texas — Southwest Mattress Sales, Inc., which does business as Factory Mattress, filed for Chapter 11 bankruptcy protection on June 7 in the U.S. Bankruptcy Court for the Western District of Texas, Austin Division. The company will remain in business through the bankruptcy process and continue normal operations thereafter.

Owner and founder Steve Frey said road construction projects have put a strain on access to many of his store locations for years. “The reorganization is a mandatory step to get economic relief,” he said. “Our stores will have no interruption in operations for sales and support to our customers.”

In the filing, the company listed estimated assets of $1,000,001 to $10 million with estimated liabilities totaling $1,000,001 to $10 million to an estimated 50 to 99 creditors.

Among those liabilities, it lists $434,458.70 owed to Tempur-Pedic, $134,964 to Sealy, $72,755 to Kingsdown, $65,734.96 to M.D. Mattress, $49,264 to Serta, $41,366 to Nectar and $35,376 to Sleep Designs. Lines of credit and rents make up most of the rest of its top 20 unsecured debts.

Factory Mattress operates 21 stores in the Austin and San Antonio markets.

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