If you’ve driven past a Factory Mattress location in Austin, Georgetown, or San Antonio recently, you may have noticed “going out of business” banners in the windows. Online searches about the chain’s future have picked up noticeably — and some of those searches are pulling up news about a completely different company called Mattress Factory. The two are not the same business, and that distinction matters quite a bit depending on where you live and where you shop.
This article covers the current status of Factory Mattress (the Texas retailer), what its 2024 bankruptcy filing actually meant, how the situation evolved into 2025 store closures, and what shoppers should know before making any decisions.
What Factory Mattress Is and Who Operates It
Factory Mattress is a regional mattress retailer based in Austin, Texas. It primarily serves the Austin–San Antonio corridor, including surrounding communities like Georgetown and Selma. It is not a national chain, which is why coverage of its financial situation has appeared mostly in local Texas outlets rather than national retail publications.
The legal entity behind the brand is Southwest Mattress Sales, Inc., which operates under the trade names Factory Mattress and Factory Mattress Sales. This corporate identity is confirmed through bankruptcy court filings in the Western District of Texas. Understanding this is useful context, because when the company filed for bankruptcy protection, the case was filed under the Southwest Mattress Sales name.
The Chapter 11 Bankruptcy Filing and What It Originally Meant
Southwest Mattress Sales, Inc. filed for Subchapter V Chapter 11 bankruptcy on June 7, 2024, in the U.S. Bankruptcy Court for the Western District of Texas, Austin Division. Subchapter V is a streamlined version of Chapter 11 specifically designed for small business debtors.
The key point here is that Chapter 11 is a reorganization, not a liquidation. When a company files Chapter 11, it is asking the court for time and legal protection to restructure its debts while continuing to operate. It is not the same as shutting down. At the time of the filing in 2024, Factory Mattress stated it intended to remain in operation throughout the process and expected to resume normal business afterward.
A reorganization plan was later confirmed by the court in May 2025. That sounds like a positive development — and in a legal sense, it was a milestone. But confirming a reorganization plan does not always mean stores stay open. Sometimes the plan itself requires downsizing, closing locations, or winding down retail operations if the numbers no longer support them.
Chapter 11 vs. Chapter 7: A Quick Distinction
Chapter 7 is a full liquidation. The business stops operating, assets are sold off, and the company ceases to exist in any functional form. Chapter 11 is structured to give the business a path forward — but that path can still lead to closures if the reorganization plan requires it. This is why early coverage in 2024 said “filing for reorganization” while later 2025 coverage describes store closures. Both statements can be accurate at different points in the same process.
Store Closures Across Austin and San Antonio in 2025
By mid-to-late 2025, local reporting confirmed what many shoppers had already seen firsthand: Factory Mattress locations across its primary Texas markets are closing. Community Impact reported that all Factory Mattress locations in Austin and San Antonio are closing as a result of the bankruptcy.
Specific documented closures include the Georgetown store and the Selma location, with other San Antonio-area sites expected to follow as inventory sells down. Several Austin-area locations had already closed before the Selma closure was reported in September 2025.
The company ran going-out-of-business sales advertised at up to 80% off across affected stores. Closing dates were not always disclosed publicly in advance, which made it difficult for shoppers to plan around specific timelines.
This outcome reflects a pattern that plays out regularly in retail bankruptcies. A company files Chapter 11 with the intention of restructuring and surviving, but if market conditions, lease obligations, or debt loads make the existing footprint unsustainable, the result is still widespread closures — even after a plan is confirmed.
Factory Mattress and Mattress Factory Are Two Different Companies
A significant source of confusion is the similarity in names between Factory Mattress (the Texas chain) and Mattress Factory (a separate chain in the Philadelphia region and South Jersey). They are completely unrelated businesses operating in different parts of the country with different ownership structures and different reasons for their current situations.
Mattress Factory, the Pennsylvania and New Jersey chain, announced in late 2025 that all remaining stores would close. However, the reason there is notably different: the owners are retiring after running a family-owned business for 26 years. This is a planned closure driven by a personal decision, not a bankruptcy filing. Liquidation sales at Mattress Factory locations were expected to run into February 2026.
If you live in Texas and searched “Factory Mattress going out of business,” you may have landed on stories about the Pennsylvania chain and assumed they applied to your local store. They do not. If you live in New Jersey or Pennsylvania and are seeing news about closures, that refers to Mattress Factory — not the Texas-based Factory Mattress.
What This Means for Factory Mattress Customers in Texas
If You’re Considering a Purchase During the Liquidation
Going-out-of-business sales at closing retail locations can offer genuine value, but there are some practical things to keep in mind before buying.
- “Up to 80% off” applies selectively. Not every item carries that discount. The headline figure represents the maximum, not a blanket reduction across all inventory.
- Return policies are typically restricted or eliminated. Liquidation sales are often final sale. Test the mattress carefully in the store before committing.
- Delivery timelines may be uncertain. During a wind-down, logistics and staffing can become less reliable. Ask specifically whether delivery and setup services are still being honored and within what timeframe.
- Warranty coverage typically shifts to the manufacturer. Major mattress brands like Sealy or Serta carry their own warranties that remain valid even if the retailer closes. Keep your receipt and any warranty documentation. If you have questions about a claim, contact the manufacturer directly rather than the store.
If You Already Purchased and Have a Pending Order
If you placed an order before the closure news and haven’t received your delivery yet, take these steps:
- Contact the store directly to confirm your scheduled delivery is still on track.
- If you cannot reach the store or get a clear answer, contact your credit card issuer or financing company. Many credit cards offer purchase protection or dispute rights in situations like this.
- Keep records of all communications, your order confirmation, and any payment receipts.
If You Have Concerns About Your Warranty
Your mattress warranty is almost certainly tied to the manufacturer, not the retailer. If Factory Mattress sold you a mattress under a brand warranty from Serta, Sealy, Tempur-Pedic, or another manufacturer, that warranty does not become void because the store closes. Contact the mattress brand directly with your proof of purchase if you have a claim.
Why Regional Mattress Retailers Are Under Pressure
The challenges facing Factory Mattress are not unique to that company. Regional mattress chains across the country have faced a difficult combination of market forces over the past several years. The home goods buying surge during the pandemic was followed by a significant pullback in consumer spending on furniture and bedding. At the same time, online mattress brands and big-box retailers have taken substantial market share away from brick-and-mortar specialty stores.
Add rising commercial rents and higher interest rates to the picture, and smaller regional chains with multiple physical locations face a structurally harder operating environment than they did a decade ago. This broader context applies to Factory Mattress in Texas and to Mattress Factory in Pennsylvania, even though the specific circumstances of each company differ.
For a deeper look at retail business trends and what they mean for consumers and local markets, The Business Layer covers these developments with practical analysis.
How to Check the Status of Your Local Factory Mattress Store
Given that closing timelines were not always publicly announced in advance, the most reliable approach is to check directly. If the Factory Mattress website and store locator are still active, start there. Local news outlets — particularly Community Impact, which covers Austin-area and San Antonio-area markets — have published store-specific closure updates and are worth checking for the latest information in your specific area.
As of the most recent reporting available at the time this article was written, all Austin and San Antonio-area Factory Mattress locations were in the process of closing. If you are making a purchasing decision, confirm the current status of your nearest store before visiting.
The Bottom Line
Factory Mattress — the Texas-based chain operated by Southwest Mattress Sales, Inc. — filed for Subchapter V Chapter 11 bankruptcy in June 2024 with the stated intent of reorganizing and continuing operations. A plan was confirmed in May 2025. However, by mid-to-late 2025, all Austin and San Antonio-area locations were closing, with liquidation sales underway.
This is not the same company as Mattress Factory, which is closing its Pennsylvania and New Jersey stores due to owner retirement. The name similarity has created real confusion, but the two chains are entirely separate.
If you are a current Factory Mattress customer in Texas, your manufacturer warranty should remain valid through the
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