Sleep Country Canada has agreed to acquire the Minneapolis-based Sleep Number Corp. for $415-million(US) and Sleep Number has initiated a voluntary Chapter 11 bankruptcy filing to facilitate the transaction. Sleep Number initiated a voluntary Chapter 11 sale process in the U.S. Bankruptcy Court for the District of New York. As part of this process, Sleep Country Canada will serve as the ‘stalking horse’ bidder in a court-supervised sale process. Accordingly, the proposed transaction is subject to higher and better offers, Court approval and other closing conditions. In its first quarter that ended in early April 2026, Sleep Number reported net sales of $319-million(US), down 18.9 percent from the previous first quarter. The chain ended the quarter with 577 stores, down from 637 stores a year earlier. “For 40 years, Sleep Number has been a leader in sleep innovation, helping millions of customers improve their health and well-being through personalized sleep solutions,” said Sleep Number’s President, CEO Linda Findley. “While we have made meaningful progress advancing our turnaround efforts and strengthening our operations, our capital structure remains unsustainable. Following a comprehensive review of our strategic options and a robust sale process, we are confident that moving forward with the Sleep Country Canada agreement and this court-supervised sale process will enable us to address our financial constraints. It will also position us to expand our business, helping more people achieve their best sleep both in the United States, and through future international expansion.” A leader in personalized sleep wellness, the Sleep Number mattresses are designed to evolve with each sleeper. With adjustable firmness, pressure-relieving support and temperature balancing comfort built into every mattress, Sleep Number beds adapt to customers’ changing needs. In addition to its over 570 stores across the U.S., the company also has an online component. Stewart Schaefer, President, CEO of Sleep Country Canada, noted, “We have long admired Sleep Number, its game-changing personalized sleep products and the talented team behind them. Together, we see a tremendous opportunity to build on our complementary strengths and accelerate growth across the United States while introducing Sleep Number’s innovative sleep solutions to consumers in Canada and other markets. We are excited about what we can accomplish together and the ways we can help support the wellbeing of our customers through every stage of their sleep wellness journey.”
Sleep Number Corp., 1001 3rd Ave South, Minneapolis, Minnesota 55404 (888/411-2188 www.sleepnumber.com)
Sleep Country Canada Holdings Inc., 140 Wendell Ave., Unit 1, North York, Ontario M9N 3R2 (888/753-3788 www.sleepcountry.ca)