Sleep Number filed for bankruptcy in New York on June 12 with approximately $672 million in debt, citing inflation, tariffs and supply chain disruptions that forced the court-supervised process.
The smart bed maker said its planned sale to Sleep Country Canada would create “North America’s leading mattress and bedding company” and expand its reach into the U.S. and Canada with a broader selection of products in stores and online.
The company said customers will continue to shop in stores and online, receive deliveries, and enjoy warranty and smart bed services as usual during the restructuring.
Sleep Number, headquartered in Minneapolis, has about 2,920 employees and operates 572 stores across the United States, according to Reuters.
Why did Sleep Number file for bankruptcy?
Sleep Number’s business was strained by mounting losses and rising costs, and it entered bankruptcy. The company posted net sales of $319 million and a net loss of $50 million in the first quarter of 2026, according to a filing with the Securities and Exchange Commission.
According to Reuters, court documents say the company had already tried to stabilize its finances by refinancing debt, closing stores and streamlining its product lineup. Still, Sleep Number said the tariffs and widespread supply chain disruptions increased costs and uncertainty, ultimately forcing it to seek Chapter 11 protection.
USA TODAY has reached out to the company for additional comment.
Leader comments and strategic direction
Linda Findley, Sleep Number’s president and CEO, said that while the company has made progress in its restructuring efforts, its capital structure “remains unsustainable.” He said the bankruptcy proceedings and acquisition by Sleep Country Canada are aimed at reducing debt and positioning the company for long-term growth, including possible expansion outside the United States.
Stewart Shafer, CEO of Sleep Country Canada, said the partnership brings together complementary businesses and creates opportunities for expansion across North America, including introducing Sleep Number products to Canadian consumers.
If approved, the acquisition would combine Sleep Number’s U.S. footprint with Sleep Country Canada’s network of more than 300 stores.
What about your partnership with Travis Kelce on Sleep Number?
Sleep Number has maintained advertising partnerships with the NFL, including through a sponsorship deal with Kansas City Chiefs tight end Travis Kelce.
Under the agreement, Kelce committed to purchase shares of Sleep Number in the open market and was eligible to receive additional shares over the three-year period of the partnership.
The court filing does not indicate how much stock Kelce acquired or how the sponsorship deal will be handled during the bankruptcy process. In many Chapter 11 cases, existing stock ultimately lapses.
Contributed by: Reuters
Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com or X @athompsonUSAT.
