AFC Acquisition Corporation, operating under the business name American Home Furniture & Mattress, has filed for bankruptcy. The furniture retail chain in New Mexico is seeking to reorganize its business through a Chapter 11 filing. The company says stores will remain open and operations will continue without impacting customers.
AFC Acquisition Corporation Seeks Bankruptcy Protection
According to court records available on PACER, AFC Acquisition Corporation made a voluntary filing on March 4. The Chapter 11 proceeding is taking place in the U.S. Bankruptcy Court for the District of New Mexico.
Through the filing, AFC Acquisition Corporation, doing business as American Home Furniture, plans to reorganize operations rather than liquidate assets.
Attorney Christopher M. Gatton of Gatton & Associates, P.C. is legally representing the furniture retail chain in the case.
Operations Will Remain Unaffected
American Home Furniture & Mattress stated on its website that the Chapter 11 filing is intended to improve its financial position and maintain stability for the long haul. The company also emphasized that it is “not going out of business.”
Customers can still shop at its Albuquerque locations, which will stay open throughout the bankruptcy. Existing and new customer orders will also be fulfilled despite the Chapter 11 filing. Gift cards and warranties will remain valid.
Company Background
American Home Furniture & Mattress has been offering a range of furniture items, mattresses, rugs, and decor across New Mexico for over eight decades. Emanuel “Mannie” Blaugrund founded the company in 1936 to offer a community-focused furniture store experience at a range of price points.
As of now, owner and CEO Kenton Van Harten lead the independent furniture chain. The company website adds that American Home Furniture & Mattress currently employs about 150 people. Customers can shop at its brick-and-mortar stores in Albuquerque or browse its online showroom.
American Home Furniture & Mattress also backs statewide organizations, such as Roadrunner Food Bank, Echo Food Bank, The Food Depot, and University of New Mexico Hospital.
Case Related Details
Court records show attorney Christopher M. Gatton filed the Chapter 11 petition on behalf of AFC Acquisition Corporation, paying a filing fee of $1,738. Further information listed in the petition is:
- Filing Date: March 4, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the District of New Mexico
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 1:26-bk-10283
- Estimated Assets: $1,000,001 to $10 million
- Estimated Liabilities: $1,000,001-$10 million
- Reason for Filing: Restructure business under court supervision
Court records indicate the company owes approximately 49 creditors. While representing the furniture chain, the attorney submitted a list of the 20 largest creditors.
Court filings also list a corporate resolution among the submitted documents.
The first-day motions submitted by AFC Acquisition Corporation included emergency motions to pay employees and use cash collateral.
Court records state that the deadline of AFC Acquisition Corporation to submit a summary of assets and liabilities, financial statements, a list of equity security holders, and monthly income information is March 18. Schedules A/B, C, D, E/F, G, H, I, and J should be filed by the same date as well.
The exclusivity period for the Chapter 11 plan of AFC Acquisition Corporation is July 2, the filing details add.
Way Forward for American Home Furniture & Mattress
The decision by AFC Acquisition Corporation, operating as American Home Furniture & Mattress, to reorganize operations comes after a delayed freeway construction. The prolonged process impacted its stores in Albuquerque. The retailer also cited economic pressures, including tariffs and inflation.
To execute the reorganization, the retailer is planning to consolidate its operations. As part of this process, American Home Furniture & Mattress has already begun floor model sales at its Santa Fe and Farmington outlets. Customers in these locations will keep getting service through the retailer’s Albuquerque locations, including delivery options.
As the restructuring process progresses, American Home Furniture & Mattress moves towards continuing to serve customers through its Albuquerque stores. Additional filings and hearings are expected in the coming weeks.
