Sleep Number Files Chapter 11, Agrees to Sell Assets

Sleep Number Corporation and its subsidiaries filed voluntary petitions for Chapter 11 bankruptcy on June 12, 2026, in the U.S. Bankruptcy Court for the Southern District of New York. Concurrently, the company entered into a stalking horse asset purchase agreement with Sleep Country Canada, aiming to create a leading North American mattress and bedding company. Sleep Number secured up to $260 million in debtor-in-possession financing to support ongoing operations during the court-supervised sale process. The company expects its common shareholders to face a complete or significant loss on their investment, with shares likely to be delisted from Nasdaq.