Us-made Bedding Brand To Liquidate In Chapter 7 Bankruptcy

Americans like the concept of "made in the USA products, but have generally not shown a willingness to pay more for those items.

"While 69% of Americans believe that an item being American-made is at least somewhat important, 37% would not be willing to pay any more for that item. Twenty-six percent would only pay 5% more, and 21% capped it at 10% more," according to a Reuters/Ipsos study.

Producing items in the United States costs more money.

"The higher cost of labor in the US is one of the primary hurdles. While American workers are highly skilled and productive, their wages are considerably higher compared to workers in countries where wages are lower. This wage disparity can make it difficult for U..S manufacturers to compete on price with those in developing nations," Cleverance reported.

In addition to labor costs, the expense of setting up or upgrading manufacturing plants in the U.S. is another barrier.

"Many companies find that the facilities they previously operated in overseas no longer meet the standards or scale needed for production in the US. Significant investments in infrastructure, machinery, and technology upgrades are often required, further driving up costs," it added.

And, while patriotism has its place, a global market actually supports the American standard of living.

“Think about how much a pair of sneakers would cost if they were made here in the United States, or a phone or any number of the items that you go to a retail store to purchase. It would be a lot more expensive,” said Colin Grabow, associate director at the Cato Institute’s Herbert A. Stiefel Center for Trade Policy Studies, CNBC reported. “So we should all welcome the fact that goods are being produced in the most efficient ways possible, because that lowers prices for us and allows us to raise our standard of living.”

That makes it very challenging for companies that tout being "made in the USA" to compete. One of those brands, Sol Beauty has filed for Chapter 7 bankruptcy, and plans to completely liquidate.

Sol Beauty files Chapter 7 bankruptcy

It's important to note that the Sol Beauty that has filed for Chapter 7 bankruptcy is the California company that makes bedding, specializing in toppers for salons and massage studios. Another company using the similar name, Sol Beauty and Care, which makes shapewear, has no relation to the filing and is not impacted in any way.

"The Sol Beauty Co. built its business around products designed for relaxation and everyday comfort. According to the Sol Beauty Instagram account, it offers memory foam toppers, pillows, and various covers commonly used in spa, massage, lash, and facial services," according to EdHat.com.

The company described itself on its Instagram page, as a product/service company, “elevating beauty and comfort in every space."

If described its product range as being "from spa essentials to cozy home luxuries,discover products crafted for relaxation and style," according to its Instagram page header.

Sol Beauty Co. also claims to make all its products in the United States.

While no specific reason was given for the filing, the documents present a bleak picture of declining revenues.

Sol Beauty Co. generated $450,255 in 2023, which fell to $260,368 in 2024. For 2025, from January 1 through the filing date, reported revenue totaled $122,000. Total liabilities are listed as $205,939.98.

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Sol Beauty Co. bankruptcy at a glance

• Sol Beauty Co., Inc. filed for Chapter 7 bankruptcy in December 2025, meaning it plans to liquidate rather than reorganize, edhat reported.
• Bankruptcy Case Info: Filed on December 4, 2025 in U.S. Bankruptcy Court, Central District of California under Case No. 8:25‑bk‑13407‑MH, according to Inforuptcy.
• Court listing shows it as a voluntary Chapter 7 petition with no substantive assets and a trustee appointed, added Inforuptcy
• Revenue decline over recent years: $450K in 2023, $260K in 2024, $122K in 2025 (through filing), shared edhat.
• Liabilities listed around $205,940, including claims by:
  Stearns Bank (secured) U.S. Small Business Administration Shopify Inc. Servicing Solutions LLC Tax agencies (IRS, Franchise Tax Board, CA tax agencies).
• Listed CEO and 100% owner is Maria Aparicio.
• Bankruptcy docket overview: includes notices of petition and creditor meeting scheduled for January 7, 2026, according to Inforuptcy
  Docket summary: Sol Beauty Co. Bankruptcy Case Info (case 8:25‑bk‑13407)
• The company's website (solbeautyco.com) currently shows a single page with no mention of the bankruptcy.

What's next for Sol Beauty Co.?

"Under Chapter 7 bankruptcy, a business determines that its debts are so overwhelming that there is no option other than to close the business. A court-appointed trustee becomes responsible for selling company assets, the proceeds of which are used to pay off the company’s debts," according to Allianz Trade.

That's generally not good news for anyone owed money or people who have undelivered products. In the case of Sol Beauty, there is a secured creditor, so that any remaining proceeds will go to Stearns Bank until that debt has been settled.

Understand the Situation

• Chapter 7 means the business liquidates and usually stops operating, and all of its assets are frozen and sold by a court‑appointed trustee.
• File a Proof of Claim (If You’re Owed Money or Merchandise): If the company owes you a refund, product, deposit, or service, you may be considered a creditor.
• To be considered for any repayment from the bankruptcy estate, you generally must file a Proof of Claim with the bankruptcy court by the deadline listed in the court notice. Contact the bankruptcy court clerk handling the case or check the court’s website for the claim form and deadline.
• Proof of Claim info: U.S. Courts forms and instructions are at uscourts.gov.
  Source Bankruptcy Basics, United States Courts
• If You Paid With a Credit Card, contact your credit card company.
• If you paid for undelivered goods or services with a credit card, you may be able to dispute the charge under the Fair Credit Billing Act. Credit card issuers can reverse (charge back) the payment if the merchandise wasn’t delivered, according to BDO.
  This is often easier and faster than waiting on the bankruptcy process.
• Gift Cards, Deposits & Prepaid Services, check gift card/deposit options: With Chapter 7, the retailer is unlikely to honor gift cards unless another business agrees to. Otherwise, you may need to file a claim as an unsecured creditor, according to WisBusiness.
• Under bankruptcy law, some small customer deposits for goods not received may get priority up to certain limits before general unsecured creditors are paid — but you must still file a claim and there’s no guarantee of recovery, added BDO.
• Save All Documentation: Keep receipts, order confirmations, contracts, emails, proof of payment, and any notices you receive. These support your claim, according to Justia.
• Respond to Court Notices: If you’re listed as a creditor, you may receive notices of the bankruptcy docket, deadlines, or creditor meetings. Read them carefully and follow instructions, Justia added.
  Watch Deadlines Closely: Bankruptcy procedures are strict, and missing a claims deadline usually means you lose your chance to recover funds.

Related: $1 billion Hollywood studio files surprise Chapter 11 bankruptcy