Cologne is raging: MFO mattress retailer closes all 97 branches!

Cologne is raging: MFO mattress retailer closes all 97 branches!

The economy is hitting hard waves in Cologne: The mattress retailer MFO has made the bitter decision to close all of its 97 branches by the end of the year. Around 300 employees are affected by the bankruptcy, which is the second in eight years. In 2017, the company went through a protective shield procedure, but the current economic challenges have now finally worsened the situation. Loud t online MFO was unable to find a potential buyer, which made closure inevitable.

The affected locations extend across Cologne, where the branches are in Ehrenfeld, Godorf and Urbach, as well as in Bonn, Siegburg, Langenfeld and Bergisch Gladbach. MFO's turnover, which was 34.4 million euros in 2023, could not compensate for losses of 1.2 million euros. The only measure left until the end of the year is to sell off the goods, while inflation and general consumer uncertainty have ensured that numerous takeover offers have failed to materialize.

A look at the overall market

This insolvency is not an isolated case, but rather fits into a worrying overall picture of the German economy. In the first half of 2025, according to reports World 11,900 companies declared bankruptcy, an increase of 9.4% compared to the previous year. Medium-sized businesses in particular are suffering from a profound structural crisis, while over 80% of insolvencies affect small companies. Larger companies such as Märzen Direct AG, which also had to file for bankruptcy, are also affected by the high number of bankruptcies. This manufacturer operates under the MFO brand and has had to close branches in the past due to financial bottlenecks.

The causes are diverse: demand is weakening, costs are rising and companies' uncertainty is growing. Experts fear that bankruptcies will continue to rise if companies are unable to reinvent themselves or make drastic cuts to remain profitable.

The impact on employees

This development is particularly bitter for the approximately 300 employees of the mattress retailer MFO. The loss of jobs comes at a time when many people are already struggling with uncertainties, which are exacerbated by inflationary tendencies and the sometimes unstable market situation. With the loss of these jobs, concerns about the stability of the labor market are growing, not only in Cologne, but also in other cities where MFO and similar companies operate.

The question remains: what happens next in the industry? Will other mattress retailers suffer similar fates? The economic situation remains tense and many industry observers are concerned about the coming months. One thing is certain, however: the economic challenges are far from over and bankruptcies appear to remain at a ten-year high.