Sleep Number plans $415 million bankruptcy sale
FILE- A Sleep Number mattress store is shown in Walnut Creek, California, July 17, 2024. (Photo by Smith Collection/Gado/Getty Images)
Sleep Number filed for bankruptcy on June 12 stating that it plans to sell its assets under a $415 million buyout offer from Sleep Country Canada, Inc.
Reuters reported that Sleep Number entered bankruptcy with $672 million in debt, with the Minnesota-based mattress company blaming tariffs and inflation for its recent struggles with the business.
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In court documents obtained by Reuters, Sleep Number stated that the company is still open to higher bids than Sleep Country's $415 million offer, and it plans to conduct a July 13 auction if a larger bid is received.
Sleep Number bankruptcy sale
The backstory:
Sleep Number’s goal is to have a sale approved in bankruptcy court by July 15 and a closing date on the sale by July 31.
Citing the Securities and Exchange Commission, Reuters noted that Sleep Number reported $319 million in net sales and net losses of $50 million for the first quarter of 2026.
Before Sleep Number filed for bankruptcy, the organization attempted to free up extra cash flow by refinancing some of its debt, closing several stores, and refining product offerings.
Sleep Number also sold its rights to refunds under 2025 tariffs that were unsubstantiated, according to court documents obtained by Reuters.
According to Reuters, Sleep Number also has advertising partnerships with the NFL and three teams and broadened those connections with its sponsorship agreement with Kansas City Chiefs star tight end Travis Kelce.
Kelce pledged to purchase some Sleep Number stock on the open market and would have been given extra stock over the three-year sponsorship.
Sleep Number currently has 572 retail stores across the country.
The Source: Information for this story was provided by Reuters. This story was reported from Washington, D.C.