The bed retailer has announced it is to close 14 of its 25 stores, with the loss of more than 100 jobs.
Norwich-based Mattressman blamed "struggling sales in the current retail climate", saying it needed to "downsize" as part of a "restructuring process".
A £1.1m profit in 2017 turned to a loss of £2.6m in the financial year ending 31 March 2018, the company said.
Stores set to close include those in Birmingham, Corby and York.
The bed chain, which started in 2004 with a store in North Walsham, Norfolk, said it had "encountered numerous issues in the past 12 months". These included "adverse weather", which affected trade during March and April, leading to a "15% like-for-like sales drop".
It has now drafted in business rescue and insolvency specialists McTear Williams and Wood to assist with a proposal to put to its creditors.
The stores earmarked for closure are in Birmingham, Chingford, Corby, Coventry, Ipswich, Isle of Wight, Leicester, Lincoln, Manchester, Milton Keynes, Nottingham, Rotherham, Thanet and York.
"Unfortunately, whilst optimistic about the future, necessary changes to the company will see job losses exceeding over 100 employees," a company spokesman said.
Mattressman said it would continue to trade and would "endeavour to fulfil any outstanding customer orders, and where this is not possible, ensure customers will receive their money back".
No date has been given for the closures.
