Sleep Number Corp

Sleep Number Corporation announced it received a notice from Nasdaq regarding the delisting of its common stock, effective June 23, 2026. This decision follows the company's voluntary filing for Chapter 11 bankruptcy on June 12, 2026, with Nasdaq citing public interest concerns, residual equity interest, and the company's ability to meet listing requirements. Sleep Number does not plan to appeal the delisting, which is not expected to impact its business operations or the Chapter 11 cases. While the common stock may trade on over-the-counter markets, there is no assurance of this.

Sleep Number Corporation and its subsidiaries have entered into a Fourteenth Amendment to their credit agreement, securing up to $260 million in debtor-in-possession financing. This facility includes $65 million in new term loans and $195 million in roll-up loans, with a maturity date of September 16, 2026. The Bankruptcy Court has approved the transaction on an interim basis, with a final hearing scheduled for July 9, 2026. The financing carries an interest rate of SOFR plus 8.00% or base rate plus 7.00%.

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.

Sleep Number Corp announced the election of Colin M. Adams, Esq. to its Board of Directors, effective June 4, 2026. With this addition, the company's Board now comprises 7 members, 6 of whom are independent directors according to Nasdaq standards. Mr. Adams' compensation for his board service will be a monthly fee of $40,000, with additional fees for extra activities.

Sleep Number Corporation's Board of Directors approved one-time cash retention awards totaling $5.5 million for critical leaders, including named executive officers. In connection with these new grants, most executives waived their rights to receive payments from previously granted sign-on bonuses or retention awards, amounting to $1.725 million. The net new retention amount for these executives is $3.775 million, with the awards subject to repayment if employment is terminated for cause or due to resignation within twelve months.

Sleep Number Corporation's shareholders held their 2026 Annual Meeting, where they elected three directors and approved an amendment to the 2020 Equity Incentive Plan, increasing shares by 750,000. However, key corporate governance proposals to declassify the Board and eliminate supermajority voting requirements in the Company's Articles were not approved, as they failed to receive the required two-thirds affirmative vote. The Board expressed disappointment regarding the rejection of these governance proposals but remains committed to pursuing them.

Sleep Number Corp reported a net loss of $(50.3) million for Q1 2026, a significant increase from $(8.6) million in Q1 2025, on net sales of $319.0 million, down from $393.3 million year-over-year. The company incurred $21.7 million in restructuring costs during the quarter, primarily due to asset impairments. Management also raised substantial doubt about the company's ability to continue as a going concern, despite ongoing turnaround strategies and recent credit agreement amendments.

Sleep Number reported first-quarter 2026 net sales of $319 million, an 18.9% decrease year-over-year, resulting in a net loss of $50 million, significantly wider than the $9 million net loss in the prior year. The company is advancing a turnaround strategy through product and brand resets, alongside $200 million in annualized cost savings. Sleep Number is also focused on securing a long-term capital solution, having recently obtained $55 million in incremental liquidity, and is not providing financial guidance during this strategic review.

Sleep Number Corp (SNBR) announced an amendment to its credit agreement, securing an additional $55 million in liquidity, including a new $25 million term loan. This agreement provides relief on certain financial and liquidity covenants, waiving the $30 million minimum liquidity covenant until after July 1, 2026. The company is focused on executing its turnaround plan, including new product launches and marketing campaigns, while evaluating strategic business and financing opportunities. SNBR also confirmed that its Q1 2026 performance is on track with expectations, with results to be released on May 12, 2026.