Sleep Number Files for Bankruptcy Sale to Sleep Country Canada

Sleep Number Corp. filed for Chapter 11 bankruptcy protection on June 20, 2024, initiating a sale process to Sleep Country Canada. This move follows years of declining sales and increasing financial strain for the mattress manufacturer. The proposed transaction is structured as a "stalking horse" bid, meaning Sleep Country Canada will serve as the initial bidder, but other potential buyers can submit higher offers during an auction process overseen by the court. Sleep Number's financial difficulties have been exacerbated by a prolonged period of weak consumer demand for its products. The company has been working to restructure its debt and operations in an effort to improve its financial standing. The acquisition by Sleep Country Canada, a major bedding retailer in Canada, is expected to provide Sleep Number with the necessary capital and operational support to navigate its financial challenges and continue its business operations. The deal is subject to customary closing conditions, including court approval and the outcome of the auction process. This strategic move aims to secure the future of Sleep Number while potentially expanding Sleep Country Canada's market presence.