Sleep Number Corporation and its subsidiaries filed voluntary Chapter 11 bankruptcy petitions on June 12, 2026, in the U.S. Bankruptcy Court for the Southern District of New York. The company entered into a stalking horse asset purchase agreement with Sleep Country Canada Inc. to sell substantially all of its assets for $415 million in cash plus the assumption of certain liabilities. The company expects to secure up to $260 million in debtor-in-possession (DIP) financing, consisting of $65 million in new money and $195 million in roll-up loans. Existing debt of approximately $672.5 million has been accelerated and is in default as a result of the bankruptcy filing. The company expects its common shares to be delisted from Nasdaq and warns that shareholders will likely experience a complete or significant loss on their investment.