New Mexico Furniture Retailer Files for Bankruptcy

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American Home Furniture and Mattress, a 90-year-old family-owned furniture retailer in New Mexico, has filed for Chapter 11 bankruptcy protection. The company cited the need to restructure financial obligations, the impact of prolonged freeway construction, and inflationary and tariff-related cost pressures as reasons for the filing. As part of the reorganization, the company will close its Santa Fe and Farmington locations but continue operating its two Albuquerque stores.

Why it matters

The bankruptcy filing highlights the ongoing challenges facing the retail furniture industry, which has been impacted by supply chain issues, rising costs, and changing consumer shopping habits. The closure of the Santa Fe and Farmington locations will leave those communities without a local furniture retailer, potentially impacting consumer choice and convenience.

The details

American Home Furniture and Mattress announced the Chapter 11 filing on Thursday. The company stated that it will continue operations and fulfill all existing and new customer orders, as well as honor all gift cards, during the reorganization process. The Santa Fe and Farmington locations will be closed, with the company citing the need to consolidate operations and strengthen its long-term financial stability.

• American Home Furniture and Mattress filed for Chapter 11 bankruptcy protection on March 5, 2026.
• The Santa Fe and Farmington locations will close in the coming weeks as the company liquidates floor models.

What’s next

The company stated that it will continue operating its two Albuquerque locations (Comanche and Carlisle) and fulfill all existing and new customer orders during the reorganization process.