San Antonio, August 30, 2025

News Summary

Factory Mattress has announced the closure of all its San Antonio locations following a Chapter 11 bankruptcy filing. The company initiated a going-out-of-business sale, selling off the majority of its inventory, as it opts for liquidation instead of reorganization. With significant discounts available, customers are encouraged to make purchases before the final shutdown of the stores. The closure reflects the company’s ongoing financial challenges and the impacts of increased competition in the mattress retail market.

San Antonio

Factory Mattress will be closing all of its locations in San Antonio following a substantial inventory sale and subsequent bankruptcy filing. The decision was made after the company initiated a going-out-of-business sale as it prepared to shut down operations.

The bankruptcy filing occurred under Chapter 11 of the U.S. Bankruptcy Code, which allows a company to reorganize and attempt to regain profitability. However, Factory Mattress has opted for liquidation as it is unable to overcome its financial hurdles.

Reportedly, the company has sold off most of its inventory in recent weeks, marking a significant step in the closure process. As part of its winding down activities, Factory Mattress has offered substantial discounts in order to clear its remaining stock.

Details of the Closure

All Factory Mattress locations across the city are expected to cease operations in the coming weeks. The management has advised customers to take advantage of the ongoing sales before the final shutdown.

Financial Background

The decision to file for Chapter 11 bankruptcy reflects longstanding financial challenges faced by Factory Mattress, compounded by increased competition in the retail mattress market. Reports indicate that the company struggled to maintain profitability amid shifting consumer preferences and the economic impact of recent years.

Going-Out-of-Business Sales

As part of the closure process, Factory Mattress has engaged in going-out-of-business sales across its stores in San Antonio. Customers can expect heavily discounted prices on mattresses and related products. These sales began shortly after the bankruptcy filing and are designed to liquidate remaining inventory rapidly.

Industry Context

The mattress retail industry has seen significant changes over the past few years, with many companies facing increased pressures from e-commerce competitors. Factory Mattress has found it challenging to adapt to these trends, resulting in declining sales and profitability. Many other retailers have had to adjust their business models and marketing strategies in response to the evolving landscape, but it appears that Factory Mattress could not navigate these challenges effectively.

Future Implications

With the closure of Factory Mattress locations in San Antonio, the local market may see shifts in competition and consumer choices. The closure may also provide opportunities for both existing retailers and new entrants in the mattress market, as a gap in options for customers becomes evident.

FAQ

Why is Factory Mattress closing all its locations?

Factory Mattress is closing all its locations following a Chapter 11 bankruptcy filing and has sold off most of its inventory.

What items are on sale during the going-out-of-business sale?

The going-out-of-business sale features heavily discounted prices on mattresses and related products.

When will Factory Mattress locations in San Antonio close?

All Factory Mattress locations are expected to cease operations in the coming weeks, although exact closing dates may vary by location.

What is Chapter 11 bankruptcy?

Chapter 11 bankruptcy allows a company to reorganize its debts and attempt to regain profitability, but Factory Mattress has opted for liquidation instead.

Key Features	Details
Bankruptcy Filing	Chapter 11
Closure Status	All locations closing in San Antonio
Sale Status	Going-out-of-business sales underway
Inventory Status	Most inventory sold

Date/Time	Event	Status/Source
October 2023	Factory Mattress filed for Chapter 11 bankruptcy	Confirmed
October 2023	Initiated going-out-of-business sales	Confirmed
Coming Weeks	All locations to close	Expected

Deeper Dive: News & Info About This Topic

HERE Resources

Big Changes in Austin as Factory Mattress Closes

Additional Resources

• Community Impact San Antonio
• Wikipedia: Chapter 11
• Community Impact Austin
• Google Search: Factory Mattress bankruptcy
• Home News Now
• Google Scholar: retail mattress industry
• Community Impact Georgetown
• Encyclopedia Britannica: bankruptcy
• MSN News
• Google News: Factory Mattress closure