Mattress company Sleep Number sells assets for $700 million in bankruptcy
Sleep Number Corporation SNBRQ | 0.00 |
By Dietrich Knauth
July 20 (Reuters) - Mattress retailer Sleep Number received a bankruptcy court's approval on Monday to sell its assets to retailer Sleep Country of Canada for $701 million in total value.
Sleep Country, which previously offered $415 million for the assets at the start of the bankruptcy, agreed to pay about $286.8 million more after an auction conducted last week. Sleep Country will pay $529.5 million in cash, and it also agreed to pay some of Sleep Number's other debts, including employee severance costs and contract obligations.
U.S. Bankruptcy Judge Mike Paek approved the sale at a court hearing in Manhattan on Monday, saying the sale was a "remarkable" success on a quick timeframe.
The sale is expected to close on July 31.
"We see tremendous opportunities ahead to build a leading North American mattress and bedding company that helps customers improve their sleep and wellbeing,” Sleep Number CEO Linda Findley said in a statement.
Brooklyn Bedding was the backup bidder in the auction, according to court documents.
Sleep Number, which recently entered into a sponsorship agreement with National Football League star Travis Kelce, filed for bankruptcy in June with $672 million in debt. It blamed tariffs, inflation and supply chain disruption for business stumbles that contributed to losses in 2025 and early 2026.
Sleep Number previously said its combination with Sleep Country Canada will create "a leading North American mattress and bedding company." Sleep Number has 572 retail stores in the U.S. and Sleep Country has over 300 stores across Canada.
The company, headquartered in Minneapolis, Minnesota, has approximately 2,920 employees. Known for highly adjustable, premium mattresses, Sleep Number reported $319 million in net sales and a net loss of $50 million for the first quarter of 2026, according to its May filing with the U.S. Securities and Exchange Commission.
The case is In re: Sleep Number Corp, U.S. Bankruptcy Court for the Southern District of New York, No. 26-11399
Read more:
Mattress company Sleep Number plans $415 million bankruptcy sale
NFL star Travis Kelce takes stake in mattress maker Sleep Number