Bright yellow “GOING OUT OF BUSINESS” signs flood windows across New York and New England as the bedding retailer begins a swift five-week liquidation. Once boasting 70 stores, these closures are unfolding at unprecedented speed, reflecting severe financial distress.
Attorney Jeffrey Dove warned, “The company is running out of money very quickly.” How did it come to this sudden collapse?
The $23.7 Million Black Hole
Recorded assets stand at just under $9 million, dwarfed by liabilities totaling $23.7 million as of the September 2024 bankruptcy filing. This left a $14.82 million gap, exposing a critical financial imbalance.
Court documents indicate that unsecured creditors are unlikely to recover meaningful amounts once liquidation ends. But how did the company reach this tipping point after nearly five decades in business?
Mattress Sector Faces Growing Turmoil
The mattress retail industry has faced multiple closures in recent years. Mattress Firm filed Chapter 11 in 2018, and Sleepy’s was acquired for $780 million in 2015 and rebranded by 2017.
Analysts cite oversaturation and e-commerce disruption as destabilizing forces. The newest closure adds evidence that traditional bedding retailers are under increasing pressure. Could other long-standing chains face similar fates?
Half Measures That Accelerated Collapse
After initial bankruptcy approval in September 2024, the Northeastern Mattress Chain closed around 30 New England and New York locations to focus on more profitable stores.
Despite this, losses continued, highlighting that downsizing alone could not stop the financial bleeding. What does this mean for the company’s remaining stores in New York?
Metro Mattress: The 49-Year Empire’s Last Breath
Metro Mattress, founded in Syracuse in 1976, filed for Chapter 11 on September 4, 2024. The retailer began closing 34 stores on October 6, 2025, while six New York locations launched liquidation sales offering up to 70% off Tempur-Pedic and Sealy products.
Judge Wendy A. Kinsella signed an interim order between October 7–10, 2025, authorizing sales “free and clear of all liens, claims, and encumbrances.” The order allowed operational flexibility, merchandise transfers, and compliance with consumer protection laws. This procedural step set the stage for full liquidation in the coming weeks.
CEO Outlines Strategy Amid Struggles
CEO Dino Cifelli highlighted the company’s focus on New York stores during the September 4, 2024 Chapter 11 filing, saying the New England market exit would support a “robust future” and a “sustainable business model” despite inefficiencies of scale.
Cifelli previously expressed optimism upon his March 2024 appointment, aiming to “capitalize on new opportunities and chart a path of sustained success.” No public statements were made regarding the final October 2025 liquidation. This raises questions about how the company’s final decisions were communicated internally.
Five-Week Liquidation Countdown
Metro Mattress began liquidation sales on October 6, 2025, at six New York locations, closing 34 other stores simultaneously. The company advertised discounts up to 70% on major brands, using “Going Out of Business” banners to draw shoppers.
The court order allows merchandise transfers, inventory consolidation, and sales free of creditor claims. Attorney Jeffrey Dove said the process will take five weeks, after which remaining stock will go to liquidation firms. How the final court hearing will shape the company’s complete closure remains to be seen.
Creditors Brace for Major Losses
Metro Mattress’ Chapter 11 filing on September 4, 2024, revealed $8.88 million in assets versus $23.7 million in liabilities, creating a $14.82 million shortfall. Top creditors, including Tempur-Pedic owed nearly $2 million, face minimal recovery as total assets fall far short of obligations.
Community Bank is funding the wind-down, consolidating inventory for a five-week liquidation. Despite outreach to 21 potential buyers, no deals materialized. Could any unexpected offers still emerge before the closure completes?
The Fatal Expansion Trap
Metro Mattress grew from a Syracuse base to 70 stores across Upstate New York and New England. Under CEO Bill Spudis, the chain pursued rapid expansion in Connecticut, Massachusetts, Rhode Island, and New Hampshire, opening multiple stores between 2022 and 2024.
Six months after Dino Cifelli became CEO in March 2024, the company filed for Chapter 11. Despite closing New England locations to refocus on New York, losses continued. Was this aggressive growth strategy the final misstep?
Expansion Into New England Backfires
In 2024, the CEO rebranded stores as luxury hubs with $500,000 renovations per location, ignoring consumers’ demand for value. Marketing spend rose 30% while sales dropped 18% year-over-year. A leaked memo admitted, “We’re betting on the ‘wow factor’—customers will pay more for ambiance.” Did this gamble accelerate their downfall?
Failed Sale Attempts Prove Futile
Metro Mattress formally requested court approval to liquidate all remaining stores on October 3, 2025, thirteen months after its initial Chapter 11 filing. Attorney Jeffrey Dove testified, “We have arrived at a place we never hoped to get to,” noting the company was “running out of money very quickly” and could no longer cover operations, advertising, or post-petition expenses.
No Buyers Emerge, Liquidation Looms
Metro Mattress contacted 21 potential buyers, including financial and strategic investors, holding serious talks with four, but no offers were submitted. One financial buyer showed interest as recently as September 30, 2025, but no deal materialized.
With no buyers and continued losses—$3.7 million in the first eight months of 2025 on $15.07 million in sales—the court scheduled a hearing on October 7.
Independent Retailers Seize Opportunity
The collapse of Metro Mattress, has shifted market power toward independent retailers. Steve Houk of Boise Mattress called it a wake-up call for manufacturers to support smaller operators. Justin Trumbo warned against expansion for growth’s sake, while veteran Gordon Hecht noted overpriced occupancy and over-stored markets doomed the chain.
Metro’s closure opens space for well-managed independents to capture market share, particularly in New York and New England.
Vacant Stores Reshape Northeast Retail
Metro Mattress’s exit leaves around 40 New York stores and additional sites in Connecticut, Massachusetts, Rhode Island, and New Hampshire vacant. Connecticut faced multiple evictions and over $260,000 in unpaid rent and services.
Only seven New York locations remain for liquidation sales, while affiliated landlords absorbed losses during the wind-down. Some former stores, like 3153 Berlin Turnpike in Newington, have already been re-leased, highlighting shifting opportunities for competitors in the region.
Can Brick-and-Mortar Sleep Retail Survive?
Traditional mattress stores face rising challenges as digital adoption and shifting consumer habits reshape the market. Replacement cycles have shortened, with millennials averaging 6.5 years and Gen Z just 6.1 years. Online mattress shopping jumped to 54% by 2023, yet 85–89% of consumers still consider in-store purchases. J.D. Power found online buyers more satisfied and spending less.
The End of an Era
Metro Mattress’ 49-year run illustrates how rapid expansion, high operating costs, and shifting consumer habits can topple even longstanding regional chains. The closure leaves vacant storefronts, unsettled creditors, and new opportunities for independent retailers.
As e-commerce continues to grow, traditional mattress retailers must adapt or risk a similar fate, showing that survival depends on strategy, flexibility, and understanding what today’s consumers really want.