Sleep Number Files Chapter 11, Enters Asset Sale Agreement with Sleep Country Canada
SNBR has more than doubled off its 52-week low of $0.3.
Summary
Sleep Number Corp has initiated a voluntary Chapter 11 sale process and entered an asset purchase agreement with Sleep Country Canada, which will serve as a stalking horse bidder. This confirms earlier reports of the company preparing for bankruptcy and follows its Q1 2026 net loss of $50.3 million and reiterated going concern doubt. The Chapter 11 filing addresses the company's unsustainable capital structure and will likely lead to significant losses for existing equity holders as the company is sold through a court-supervised process. Sleep Number secured up to $260 million in debtor-in-possession (DIP) financing, including $65 million in new money, to support operations during this period. The transaction is subject to higher offers and court approval.
At the time of this announcement, SNBR was trading at $0.64 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $15.2M. 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.