Sleep Number Files Chapter 11, Announces $415M Stalking Horse Sale; Equity Holders Face Total Loss
SNBR sits 34% above its 52-week low of $0.3.
Summary
Sleep Number Corp. has filed for Chapter 11 bankruptcy and entered a 'stalking horse' agreement to sell its assets for $415 million, with common shareholders expected to receive no recovery.
Key Events · Legal and Risk Events · SNBR
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Chapter 11 Bankruptcy Filed
Sleep Number Corporation and its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code on June 12, 2026.
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Stalking Horse Asset Purchase Agreement
The company entered an agreement to sell substantially all of its assets for $415 million in cash to SNBR, Inc., a subsidiary of Sleep Country Canada Inc.
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Equity Holders Face Total Loss
The filing explicitly states that common shares are 'significantly out of the money' with 'no recovery' expected, and delisting from Nasdaq is anticipated.
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DIP Financing Secured
The company expects to receive up to $260 million in debtor-in-possession (DIP) financing, including $65 million in new money and $195 million in roll-up loans, to support ongoing operations during bankruptcy.
Analysis · SNBR · Manufacturing
Sleep Number Corporation and its subsidiaries have filed for Chapter 11 bankruptcy, a critical legal event that fundamentally alters the company's future. Concurrently, the company entered a 'stalking horse' agreement to sell substantially all its assets for $415 million to SNBR, Inc., a subsidiary of Sleep Country Canada Inc. The filing explicitly warns that common shareholders are 'significantly out of the money' and are expected to experience 'a complete or significant loss' on their investment, with delisting from Nasdaq anticipated. This confirms the company's severe financial distress and signals a near-total loss for existing equity holders.
At the time of this filing, SNBR was trading at $0.40 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $9.3M. The 52-week trading range was $0.30 to $13.94. This filing was assessed with negative market sentiment and an importance score of 10 out of 10.