Sleep Number Files for Bankruptcy With Plans to Combine With Sleep Country Canada
By Colin Kellaher
Mattress maker Sleep Number has filed for chapter 11 bankruptcy with a deal in hand to combine with Sleep Country Canada.
Sleep Number late Thursday said Sleep Country Canada, which was taken private in 2024 by Canadian insurance-focused conglomerate Fairfax Financial, has agreed to act as the stalking horse, or lead, bidder in a bankruptcy court-supervised sale process for the Minneapolis company.
Sleep Number stores will remain open and operating during their regular business hours and that its online channel is accepting new orders during the bankruptcy process, adding that it expects to secure up to $260 million of debtor-in-possession financing to support its business.
The Wall Street Journal earlier this month reported that Sleep Number was preparing to file for bankruptcy as it grappled with a high debt burden and deteriorating financial performance, and that it was aiming to use the chapter 11 process to complete a reorganization that would keep its business intact.
Shares of Sleep Number, which closed Thursday at 66 cents, were recently down 18% at 54 cents in premarket trading.
Shareholders are generally wiped out in bankruptcy cases.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
June 12, 2026 06:25 ET (10:25 GMT)
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