Shares of bedding manufacturer and retailer Sleep Number Corporation (SNBR) have been in deep trouble for a while, and now the pressure is mounting fast. The company is scrambling for rescue financing to avoid bankruptcy, as weak housing demand, rising competition, tariffs, and falling showroom traffic continue to drag down sales. And the warning signs are hard to ignore. In its annual filing with the U.S. Securities and Exchange Commission last month, Sleep Number warned there is “substantial doubt” about its ability to stay in business, pointing to heavy debt, weak sales, and the risk of breaching financial covenants.
In fact, management is now scrambling to stabilize the business. During the earnings call, CFO Amy O’Keefe said the company is working with advisors to address its credit facility and explore alternatives, including refinancing and evaluating inbound interest. Additionally, it has tapped Guggenheim Securities to assess strategic options.
