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Sleep Number Files Chapter 11, Sold to Sleep Country for $415 M

6/13/2026

Summary

Sleep Number Bankruptcy

Sleep Number Corp filed for Chapter 11 bankruptcy on 12 June 2026 and agreed to be sold to Sleep Country Canada for $415 million.
CEO Linda Findley said the structure is unsustainable, with $1.3 billion debt, $642.3 million assets, and $260 million DIP financing—including $65 million money—to keep stores and website operating.
Sleep Country Canada will be the stalking-horse bidder and will add Sleep Number’s smart-bed technology to its U.S. portfolio.

Summary

Sleep Number Bankruptcy

Sleep Number filed for Chapter 11 bankruptcy, citing tariffs and inflation from President Donald Trump’s unpredictable tariff policy as a supply-chain strain.
The court filing shows $672 million in debt, $319 million in net sales and a $50 million net loss for Q1 2026.
CFO Amy O’Keefe said regulatory uncertainty remains even after the Supreme Court struck down some Trump tariffs.
Lenders are providing $65 million of new financing to support the Chapter 11 case.

History

Historical Context

After President Donald Trump imposed 25 % steel and aluminum tariffs in March 2018, manufacturers faced higher input costs, prompting the National Association of Manufacturers to note that 95.1 % still held a positive outlook that quarter. The strain contributed to Sleep Number Corp’s 2026 Chapter 11 filing, with JPMorgan Chase providing $65 million debtor-in-possession financing to keep operations afloat.

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Sleep Number Bankruptcy

Sleep Number Corp filed for Chapter 11 bankruptcy on 12 June 2026 and agreed to be sold to Sleep Country Canada for $415 million.
CEO Linda Findley said the structure is unsustainable, with $1.3 billion debt, $642.3 million assets, and $260 million DIP financing—including $65 million money—to keep stores and website operating.
Sleep Country Canada will be the stalking-horse bidder and will add Sleep Number’s smart-bed technology to its U.S. portfolio.

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