If you’ve driven past a Factory Mattress store lately and noticed “going out of business” signs, you’re not imagining things. This isn’t a rumor, a temporary promotion, or a single-store closure. The Texas-based chain is shutting down for good, and if you’ve bought a mattress there — or were planning to — here’s what you need to know right now.
This article covers the bankruptcy filing, which locations are closing, what happens to your warranty, whether the closing sales are worth it, and how to avoid confusing Factory Mattress with other similarly named retailers.
Factory Mattress Filed for Chapter 11 Bankruptcy on June 7, 2025
Factory Mattress — operating under the corporate name Southwest Mattress Sales — filed for Chapter 11 bankruptcy on June 7, 2025, in the Texas Western Bankruptcy Court, Austin Division. This is confirmed. It is not a rumor or a single-store situation.
The chain was founded in 1977 and at its peak ran 21 locations across Austin, San Antonio, and surrounding areas. It positioned itself as the largest locally owned mattress retailer in those markets.
Chapter 11 is sometimes used by companies to restructure debt and keep operating. That is not what is happening here. In this case, all locations are being wound down through liquidation sales. There is no stated plan to reorganize and reopen. The practical reality is that the entire chain is closing.
Which Factory Mattress Locations Are Closed or Closing
All Factory Mattress locations across Texas are affected. There is no part of the chain that is staying open. However, the closing timeline is not the same across every store — it depends on how quickly each location sells through its remaining inventory.
Here is what’s been reported by location:
- Austin-area stores: All closing, including locations on US 183 (Northwest Austin), Research Blvd (North Austin), Brodie Lane (Southwest Austin), and Lakeway. Closing dates are listed as TBD.
- Georgetown: Running a going-out-of-business sale with discounts up to 80% off. No hard closing date set.
- Pflugerville: The Stone Hill Town Center location has “going out of business” signage posted on-site.
- San Antonio area: Staff at San Antonio locations have stated stores will close “whenever inventory runs out.” At least three additional San Antonio-area locations are expected to follow the same pattern.
Because there is no single closing date across all stores, the situation is fluid. Some locations may already be closed by the time you read this. Others may still be running liquidation sales. Your best move is to check your local store directly or visit factorymattresstexas.com for the most current status.
What Happens to Your Warranty If You Bought From Factory Mattress
This is the question that matters most for existing customers. The short answer: store-level protections are likely gone, but manufacturer warranties are a different story.
Store-Level Guarantees Are Probably Gone
Any comfort exchange policies, promotional return periods, or in-store service guarantees that came from Factory Mattress itself are unlikely to be honored once a location closes during bankruptcy liquidation. The store is winding down, not honoring new service requests.
Don’t wait to see if the policy holds. Assume it won’t, and plan accordingly.
Manufacturer Warranties Still Apply
If you bought a Sealy, Tempur-Pedic, Serta, or another brand-name mattress from Factory Mattress, the manufacturer’s warranty is separate from the retailer. Those warranties are tied to the brand, not the store. They remain valid even after the store closes.
For example, if you bought a Tempur-Pedic mattress from a Factory Mattress location in Austin in 2023, you can still file a warranty claim directly with Tempur-Pedic. You don’t need to go through the retailer. You will need your original proof of purchase, so find that receipt now.
Do not wait until something goes wrong to track down your paperwork. Pull out your receipt and warranty documents today, note the brand’s customer service contact information, and keep it somewhere easy to find.
The Closing Sales Are Real, But Read the Fine Print First
Discounts of up to 80% off sound appealing, and some of those prices are genuinely lower than what you’d find at competing retailers. If you’re in the market for a mattress right now, a liquidation sale can be a real opportunity.
But there are trade-offs you should understand before buying.
What to Watch Out For
- Final sale terms: Most liquidation sales are final. Returns and exchanges are typically not available, so be certain before you buy.
- Delivery limitations: As stores wind down, staffing shrinks and logistics get complicated. Confirm delivery timelines before you pay.
- No after-sale support: Once the store closes, any questions or issues go to the manufacturer, not the retailer. There will be no local service option.
- Inventory is not guaranteed: Stores are closing at different rates. If you’re looking for a specific model or size, call ahead before driving out.
The practical takeaway: if you want to take advantage of the closing sale, go in knowing exactly what you want, confirm the delivery situation upfront, and treat the purchase as final. Don’t buy based on the assumption that you can exchange it later.
Don’t Confuse Factory Mattress With These Other Chains
There’s been real confusion online about which company is actually closing. Here is a clear breakdown of who is who.
Factory Mattress (Texas) — Closing
This is the Texas-based chain discussed in this article. Corporate name: Southwest Mattress Sales. Operating since 1977. Filing date: June 7, 2025. All locations in Austin, San Antonio, Georgetown, Pflugerville, and surrounding areas are closing. Website: factorymattresstexas.com.
Mattress Factory (Pennsylvania/New Jersey) — Also Closing, Different Company
Mattress Factory is a completely separate, family-owned chain based in Pennsylvania and New Jersey. It has been operating for about 26 years and is also closing all remaining locations. The owners have cited retirement and competition from online mattress brands and national retailers as the reason. At its peak it had 15 locations; four remained as of the latest reporting, with liquidation sales running into early 2026. This is a different company with different ownership, different geography, and a different reason for closing.
The Original Mattress Factory — Not Closing
The Original Mattress Factory is a separate company entirely. It has issued an official statement confirming it is not going out of business and has no affiliation with Mattress Factory. If you’re a customer of The Original Mattress Factory, your store is not affected by either of the closures above.
If you’re unsure which company you’ve bought from, check your receipt. The retailer name and website will tell you quickly. Don’t rely on social media posts that conflate these brands.
Why Are Mattress Retailers Struggling Right Now
Factory Mattress hasn’t publicly detailed the specific financial reasons behind its bankruptcy. But the broader pattern is clear from what’s happening across the industry.
Online mattress brands have changed how people buy mattresses. Brands like Casper, Purple, and Saatva allow customers to order directly, skip the showroom entirely, and often get free returns. National chains with bigger marketing budgets have also taken market share from smaller regional retailers. Independent, locally owned stores are getting squeezed from both sides.
This isn’t unique to Texas. The Mattress Factory closure in Pennsylvania reflects the same pressure — a family-owned regional chain that couldn’t sustain itself against online and national competition. Factory Mattress had 21 locations at its peak. Maintaining that kind of footprint with rising rents, labor costs, and declining foot traffic becomes very difficult when customers can order online and have a mattress delivered the next day.
For readers interested in how these kinds of closures affect local retail economies, Business Regards covers these business trends in more depth.
What You Should Do Right Now
Here’s a simple action list depending on your situation:
If you already bought a mattress from Factory Mattress: Find your receipt and warranty documents today. Note the manufacturer brand and look up their direct customer service contact. Don’t wait until you need a warranty claim to do this.
If you want to shop the closing sale: Call your local store first to confirm it’s still open. Ask about delivery timelines and whether returns are allowed. Go in expecting a final sale with no after-purchase support.
If you’re unsure which store you bought from: Check your receipt for the exact retailer name and website. That will tell you whether it was Factory Mattress (Texas), Mattress Factory (PA/NJ), or another chain entirely.
If you’re a customer of The Original Mattress Factory: Your store is not affected. The company has confirmed it is open and continuing normal operations.
The Bottom Line
Factory Mattress, the Texas-based chain that operated for nearly 50 years, is going out of business. The Chapter 11 filing on June 7, 2025, is real, the closing sales are real, and there is no plan to reopen or restructure the stores.
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