Sleep Number Files Chapter 11 With $672 Million Debt, Plans $415 Million Sale
Updated
Updated · USA TODAY · Jun 17
Sleep Number Files Chapter 11 With $672 Million Debt, Plans $415 Million Sale
1 articles · Updated · USA TODAY · Jun 17
Summary
Sleep Number sought Chapter 11 protection in New York on June 12, pairing the filing with a planned $415 million sale to Sleep Country Canada.
About $672 million in debt, mounting losses, inflation, tariffs and supply-chain disruptions pushed the smart-bed maker into court-supervised restructuring after earlier refinancing, store closures and product cuts fell short.
$319 million in first-quarter 2026 sales still produced a $50 million net loss, underscoring CEO Linda Findley’s view that the company’s capital structure had become unsustainable.
572 U.S. stores and about 2,920 employees will keep operating during the process, with deliveries, warranties and smart-bed services continuing as usual.
If approved, the deal would join Sleep Number’s U.S. footprint with Sleep Country’s 300-plus stores and give the Canadian retailer a path to introduce Sleep Number products in Canada.