Overview
- Sleep Number filed for Chapter 11 bankruptcy on June 12, 2026, and launched a court‑supervised sale process that names Sleep Country Canada as the stalking‑horse bidder.
- Court papers list roughly $642 million in assets and about $1.28 billion in liabilities, with Sleep Country’s opening bid worth $415 million in cash plus assumed liabilities.
- The company has asked the court to approve debtor‑in‑possession financing that could total up to about $260 million, including a $65 million new‑money facility and a proposed $195 million roll‑up of prepetition debt.
- Stores and the website remain open while the company says it will honor warranties and gift cards, but it has moved to reject leases for 44 already‑closed locations and is reviewing its broader store footprint.
- The filing cites falling sales, a $50 million first‑quarter loss and industry shifts toward e‑commerce as drivers of the restructuring, and the sale leaves room for higher bids, creditor recoveries to be determined, and potential impacts on employees, suppliers and landlords.