Sleep Number seeks Chapter 11 protection in New York, lines up $415M sale

Smartbed maker Sleep Number filed for Chapter 11 bankruptcy protection in New York on June 12 with about $672 million in debt. The company cited inflation, tariffs and supply chain disruptions that drove up costs and contributed to ongoing losses, including $319 million in net sales and a $50 million net loss in the first quarter of 2026. It plans to sell the business to Sleep Country Canada for $415 million, pending court approval. Operations are expected to continue during the restructuring, though the company said its common stock is likely to be canceled in the process.