Sleep Number Corp., the mattress retailer known for adjustable beds, files for Chapter 11 bankruptcy and enters into an agreement to merge with Sleep Country Canada Inc. The companies say the transaction would be carried out through a court-supervised process. Multiple outlets report that Sleep Country Canada is positioned as the “stalking horse” bidder for Sleep Number in the bankruptcy proceedings.
Sources attribute the filing to years of weak demand and mounting financial pressure. Financial Post also cites tariff-related uncertainty as an additional factor contributing to the company’s difficulties. Bloomberg similarly describes growing stress on the business after a prolonged period of reduced demand.
Financial Post reports that Sleep Number’s shares have fallen by roughly 95% over the past four months, reflecting investor concern about the company’s prospects. Seeking Alpha and other reports describe the planned merger as part of the bankruptcy process intended to facilitate the sale of the business.
Overall, the covered outlets agree that the bankruptcy filing and merger agreement are linked and subject to court approval.
