Sleep Number Files Chapter 11, Strikes Sale Pact With Sleep Country Canada

Sleep Number filed for Chapter 11 bankruptcy protection and announced a court-supervised sale process, naming Sleep Country Canada as the stalking-horse bidder in a potential North American bedding merger. The deal remains subject to higher bids, court approval, and customary closing conditions, with Sleep Number continuing normal operations and projecting up to $260 million in debtor-in-possession financing to support the process. The company is also reviewing its retail footprint, including seeking to reject leases for 44 non-operational locations, while indicating potential international expansion if the sale closes. Sleep Country Canada would gain Sleep Number’s smart-bed technology and wellness platform as part of the transaction.