Providence, R.I. Mattress Discounters has filed for Chapter 11 bankruptcy protection. The 140-store chain plans to close 48 locations in New England, according to information contained in court filings made Wednesday.
The firm blames its financial trouble on an industry downturn, heightened competition and a weak economy. The New England stores lost $1.5 million last year and about $2.9 million this year.
The firm's plans include leaving the New England market, reducing some of its retail operations in the Mid-Atlantic and possibly selling its manufacturing business.
Mattress Discounters owes about $16.5 million to its lenders and about $10 million to other creditors.