Sleep Number Corp., the Minneapolis-based mattress maker known for adjustable bedding, files for Chapter 11 bankruptcy and agrees to a court-supervised process to merge with Sleep Country Canada Inc. Multiple outlets report that Sleep Country Canada is the “stalking horse” bidder and that it makes an opening offer of about $415 million. The planned transaction is designed to facilitate the sale/merger of Sleep Number.
Reporting across the sources links the filing to years of weak demand and rising financial pressure. Several outlets also cite broader economic factors, including the impact of tariffs and inflation, as well as the company’s financial trajectory following its pandemic-period growth.
Bloomberg and other coverage describe the agreement as proceeding through bankruptcy court review, while other outlets add financial context. Quartz and Financial Post report that Sleep Number has about $672 million in debt at the time of filing and that the company blames tariffs and inflation for the downturn. Financial Post also notes a steep decline in the company’s shares in recent months.
