Overview
- The company filed for court-supervised bankruptcy on Friday, June 12, and named Sleep Country Canada as a proposed merger partner while keeping the sale process open to higher and better offers.
- Court filings show roughly $1.3 billion in liabilities, first-quarter net sales fell 19% to $319 million, and net losses widened to $50 million from $9 million a year earlier.
- Sleep Number says its more than 570 U.S. stores and its website remain open, the company will honor gift cards and warranties, and it has filed motions to keep paying employees and suppliers.
- To fund operations through the process, the company plans to seek up to $260 million in debtor‑in‑possession financing and is using Sleep Country Canada as a stalking‑horse bidder subject to court approval and closing conditions.
- Industry pressures — a costly company-owned store footprint, intensified competition, and inventory liquidations that shrank gross margins — drove the restructuring and leave job, supplier, and warranty outcomes dependent on the sale process and court rulings.