If you’ve seen headlines about Purple Mattress closing factories, laying off workers, or losing money, it’s easy to wonder if the brand is on its last legs. But the full picture is more complicated than those headlines suggest.
This article breaks down what’s actually happening with Purple — what the restructuring means, what the Mattress Firm deal changes, and what you should know if you own a Purple mattress or are thinking about buying one.
Purple Is Not Going Out of Business
Let’s start with the direct answer: Purple Innovation is still operating. As of late 2025 and into 2026, the company is selling products, running its website, and actively working to grow its retail presence.
Purple has not filed for bankruptcy. It has not announced plans to shut down. In fact, it recently signed a major new retail deal that’s expected to more than double its physical store presence. That’s not what a company does when it’s preparing to close.
The confusion comes from a mix of real news — plant closures, layoffs, financial losses — that looks worse when taken out of context. Each of those things deserves a clear explanation.
What the Plant Closures and Layoffs Actually Mean
In 2024 and 2025, Purple closed two manufacturing plants in Utah — one in Salt Lake City and one in Grantsville. Corporate layoffs also happened at its Lehi, Utah headquarters. That’s real, and it affected real people.
But here’s the key detail: Purple didn’t shut down manufacturing entirely. It consolidated production into its existing facility in McDonough, Georgia. The company also kept its headquarters and distribution center in Utah.
Think of it like a restaurant chain that closes several underperforming locations while keeping the rest open. That’s restructuring, not disappearing. The goal is to cut costs and run leaner — not to exit the business.
Purple’s website is still active, its products are still being sold in stores, and its showrooms are still open. The factory closures were painful, but they were a business decision to reduce overhead, not a sign of collapse.
Purple’s Finances — Losses, Risk Language, and Recent Progress
Purple has reported net losses in recent years and carries significant debt. Its SEC filings have included what’s called “going concern” language — and that phrase tends to alarm people.
But “going concern” is a standard accounting disclosure. It means auditors are flagging that the company needs to improve its financial situation to keep operating long-term. It’s not a death sentence. Think of it like a warning light on your car dashboard. The car is still running, but it’s telling you something needs attention.
The more important recent number is this: in its most recent third-quarter results, Purple cut its net loss by more than half compared to the same period a year earlier. Revenue was roughly flat, but the sharp drop in losses shows the restructuring is doing what it was supposed to do.
Coliseum Capital, an investment firm, holds significant influence over the company. That affects how decisions get made, but it doesn’t signal that Purple is going away. Large investors often step in to stabilize struggling companies, not just to write them off.
The Mattress Firm Deal and What It Means for Purple’s Future
One of the clearest signs that Purple isn’t winding down is its May 2025 agreement with Somnigroup International, the parent company of Mattress Firm.
Under this deal, Purple’s dedicated product slots in Mattress Firm stores are expected to grow from around 5,000 to at least 12,000. That’s more than double its previous physical retail presence — essentially overnight.
Purple’s management has projected at least $70 million in additional annual revenue starting in 2026 from this expansion. To be clear, those are projections, not guarantees. But a company that’s quietly going out of business doesn’t sign deals like this.
A useful way to think about it: imagine a clothing brand that goes from having one rack in a department store to having two full sections. That’s a growth move, not a retreat.
Purple also had a dispute with Tempur Sealy over the Mattress Firm acquisition — there were concerns about what the deal would mean for Purple’s shelf space and independence. That dispute was settled. Purple confirmed it retains full ownership of its brand, patents, and its proprietary GelFlex Grid technology. No competitor absorbed those assets.
Why Some Purple Models Are No Longer Available
Some customers have noticed that older Purple mattress models are no longer listed on the company’s website. A long-time owner reviewing their mattress after five years found the exact model they bought simply wasn’t sold anymore. That kind of thing can feel like a warning sign.
But companies update and rotate product lines all the time. Think about how phone brands retire older models every year and replace them with new versions. It doesn’t mean the company is struggling — it usually means the opposite.
Purple has been simplifying its lineup as part of its broader cost-cutting effort. Fewer, more focused products are easier to manufacture and market. Discontinuing older models is a normal part of that process.
If you’re looking for a specific older model and can’t find it, it’s worth checking with a retail partner like Mattress Firm. Some older inventory may still be available through third-party sellers even after Purple stops listing it directly.
What This Means If You Already Own a Purple Mattress
A common concern during any company restructuring is: what happens to my warranty?
As long as Purple is operating — which it is — your warranty should remain in force. Warranties don’t disappear because a company closes a factory or reduces its headcount. They only become a real problem if a company goes bankrupt and liquidates entirely, which has not happened here.
If you have a warranty claim, contact Purple directly through their website or customer service line. Keep records of your purchase and any communications. That’s good practice with any brand, not just Purple.
The expanded Mattress Firm presence also means more physical locations where Purple products are sold and supported. That’s generally a good sign for ongoing customer service access.
Should You Buy a Purple Mattress Right Now?
That depends on your comfort with some remaining uncertainty. Purple is in a turnaround phase, not a stable, predictable one. The restructuring has improved its finances, and the Mattress Firm deal is a serious growth move. But the company still carries debt and faces stiff competition from larger brands.
If you’re drawn to Purple’s GelFlex Grid technology and the product fits your needs, the current business situation isn’t a reason to walk away. The company is still operating, still selling, and still honoring its warranties.
If you’re the type of buyer who wants zero uncertainty about a brand’s long-term stability, it may be worth waiting to see how the Mattress Firm expansion performs in 2026. For most buyers, though, Purple’s current trajectory doesn’t look like a company heading toward closure.
For ongoing coverage of business developments like this one, OnBizDaily tracks company news, restructuring stories, and what they mean for everyday consumers.
The Bottom Line
Purple Mattress is not going out of business. What’s actually happening is a restructuring — fewer factories, leaner operations, and a major bet on retail expansion through Mattress Firm.
The financial picture has been rough, and the road ahead still has risks. But the company has cut its losses, signed a significant new deal, and kept its core business running. That’s what a turnaround looks like, not a shutdown.
If you’ve been holding off on a purchase because of the rumors, the clearest thing to understand is this: the headlines about closures and layoffs were real, but they described a company changing shape — not one disappearing.
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