Sleep Number Corporation stock will be delisted from Nasdaq after Chapter 11 bankruptcy; shares plummet

Sleep Number Corporation's stock will be delisted from the Nasdaq exchange at the market open on Tuesday, June 23, following the company's voluntary filing for Chapter 11 bankruptcy on Friday, June 12. The Nasdaq cited the bankruptcy filing, concerns about residual equity for common stockholders, and the company's ability to meet listing requirements as reasons for the delisting. Sleep Number's shares experienced a significant decline, falling over 50% in after-hours and premarket trading on Thursday, and were already down more than 95% year-to-date by Wednesday's close. The company's CEO and president, Linda Findley, stated that the Chapter 11 filing was necessitated by an "unsustainable" capital structure, despite progress in turnaround efforts and operational strengthening. While the common stock may be quoted on over-the-counter markets, Sleep Number provided no assurance regarding its trading activity or the development of an efficient market. The delisting is not anticipated to affect the ongoing Chapter 11 proceedings. Sleep Number plans to merge with Sleep Country Canada as part of the restructuring process.