Shutterstock<\/p>\n<\/figcaption><\/figure>\n Sleep Number Corporation filed for Chapter 11 bankruptcy reorganization, seeking a sale of substantially all of its assets as a going concern to Canadian rival mattress retailer Sleep Country Canada Inc., as stalking-horse bidder for $415 million in cash and assumed liabilities. <\/p>\n The debtor has filed a bidding procedures motion, which calls for an auction to be held if a qualifying bid other than the stalking-horse bid is received before a bid deadline. <\/p>\n The debtor began a marketing process in February 2026 seeking to identify a stalking-horse bidder for the purchase of the company’s assets.<\/p>\n The Minneapolis-based mattress retail chain filed its petition on June 12, along with an asset purchase agreement, in the U.S. Bankruptcy Court for the Southern District of New York, listing $642 million in assets and $1.28 billion in debts, according to court papers provided by Kroll. <\/p>\n Sleep Number’s debts include $672.5 billion in secured credit facilities. The debtor’s largest unsecured creditors include Leggett & Platt Inc., owed over $10.2 million; Horizon Media, owed over $7.3 million; Elite Comfort Solutions, owed over $6.1 million; Flextronics International Europe, owed over $6 million; Gumotex, owed over $3.7 million; and NFL Ventures LLP, owed over $2.6 million.<\/p>\n The 39-year-old mattress retailer will seek bankruptcy court approval of a $65 million new money debtor-in-possession financing facility, along with a roll-up of $195 million in prepetition debt obligations.<\/p>\n “While we have made meaningful progress advancing our turnaround efforts and strengthening our operations, our capital structure remains unsustainable,” Sleep Number CEO Linda Findley said in a statement.<\/p>\n “Following a comprehensive review of our strategy options and a robust sale process, we are confident that moving forward with the Sleep Country Canada agreement and this court-supervised sale process will enable us to address our financial constraints,” Findley said.<\/p>\n Sleep Number blamed industry-specific macroeconomic headwinds that strained its business and resources as the reason for its bankruptcy filing. The company said a market shift to e-commerce, a decline in foot traffic and in-store sales, difficulty in maintaining a sufficient real estate portfolio and distribution network and diminishing profit margins led the company to consider a bankruptcy filing, according to court papers.<\/p>\n A culmination of these issues resulted in a historic industry recession with the company facing increased competition in the mattress industry, a reduction in discretionary consumer spending, an unpredictable regulatory environment, increased inflation and interest rates, a less dependable supply chain, and a growing tariffs burden.<\/p>\n “Sleep Country has expressed a strong interest in acquiring the company’s assets since day 1 of the prepetition marketing process and has continued throughout the process to actively engage in diligence and negotiations with the company,” Sleep Number CFO Amy O’Keefe wrote in a June 12 declaration.<\/p>\n Sleep Number, founded in 1987, opened its first retail store in 1992. It operates 572 stores in 50 states and employs 2,920 workers.<\/p>\n The company has not announced any store closings or layoffs.<\/p>\n Sleep Country, founded in 1994, is Canada’s leading specialty sleep retailer with over 300 corporate-owned stores, court papers said.<\/p>\n Related: Popular breakfast chain franchisee files Chapter 11 bankruptcy<\/strong><\/p>\n #Giant #mattress #retailer #sell #chain #Chapter #bankruptcy<\/p>\n","protected":false},"excerpt":{"rendered":" The overall U.S. bed and mattress sector may have performed well in 2025, with revenue rising by 1.3% to $28.4 billion year over year, according to\u00a0IbisWorld\u00a0analysis, but some major mattress… <\/p>\n","protected":false},"author":1,"featured_media":7039,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[246],"tags":[1020,1458,1019,5279,5307,2363,183],"class_list":["post-7038","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-popular","tag-bankruptcy","tag-chain","tag-chapter","tag-giant","tag-mattress","tag-retailer","tag-sell"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/7038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7038"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/7038\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/7039"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![](\"https:\/\/www.thestreet.com\/.image\/MTcyMDY0OTc5NTQzOTI2MDE5\/sleep-number.jpg?profile=rss\")
Sleep Number files bankruptcy <\/h2>\n
Debtor seeks a $65 million DIP loan<\/h2>\n
Historic industry recession blamed<\/h2>\n
Sleep Country’s strong interest to buy<\/h2>\n
Sleep Number financial data:<\/h2>\n
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