Sleep Number Files Chapter 11, Agrees to $415M Sale to Sleep Country Canada; Shareholders Face Total Loss
SNBR sits 31% above its 52-week low of $0.3.
Summary
Sleep Number Corp has officially filed for Chapter 11 bankruptcy, entering a "stalking horse" agreement to be acquired by Sleep Country Canada for $415 million. This definitive move follows months of severe financial distress, including a Q1 2026 net loss of $50.3 million, a forbearance agreement, and recent news of impending bankruptcy. The company expects to secure up to $260 million in debtor-in-possession financing to continue operations during the process. Critically, the article states that existing common shareholders are significantly out of the money and would likely receive no recovery, effectively wiping out their investment.
At the time of this announcement, SNBR was trading at $0.39 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $9.1M. The 52-week trading range was $0.30 to $13.94. This news item was assessed with negative market sentiment and an importance score of 10 out of 10. Source: Dow Jones Newswires.