Sleep Number has started a voluntary Chapter 11 sale after recent efforts to revive the smart bed company fell short. It's not time to say goodnight, however, as Sleep Country Canada is poised to acquire the brand and form a new North American mattress and bedding super power.
Following bumper sales during the Covid-19 pandemic, Sleep Number has struggled in recent years to recapture this past success, with net sales down 18.6% in the first quarter of 2026. This follows an all-new mattress line-up — it's largest redesign in nearly 10 years — and a cut-price clearance sale of old models.
A game-changer among the best smart beds and mattresses, Sleep Number plans to continue operations during the bankruptcy proceedings, including keeping its stores open and accepting purchases online. For current mattress owners, the App will remain operational, so Sleep Number's struggles don't need to ruin your sleep.
Key takeaways
- Sleep Number has filed for Chapter 11 bankruptcy with a sale to Sleep Country Canada in the works
- The brand has struggled to find financial security following the pandemic and has recently relaunched its line-up
- Sleep Number is currently still accepting purchases and will honor warranties and sleep trials
- For those who already own a Sleep Number mattress, the app will remain operational and customer service is still online
What's behind Sleep Number's financial difficulties?
It's been a tough few years for Sleep Number, which has seen lower sales and increased competition from the expanding sleep health market.
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In a statement, Linda Findley, President and Chief Executive Officer of Sleep Number, noted that while the brand had made progress in its turnaround efforts, the current capital structure is 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," she said.
Sleep Number has over 500 retail stores across the U.S., which served it well during the pandemic shopping boom. However, in the bankruptcy declaration the brand noted that as in-store foot traffic fell, these self-operated retail spaces became a burden.
Sleep Number intends to have the sale approved by July 15th and is open to higher bids, with a potential July 13th auction planned. The brand hopes to close the sale by July 31st. To continue operations during the sale process, Sleep Number expects $260 million in bankruptcy financing.
What to do if you own a Sleep Number mattress?
During the sale process, Sleep Number stores will remain open and the brand will accept new sales at SleepNumber.com. In addition, it will honor warranties and sleep trials, as well as gift cards.
If you're waiting on a Sleep Number delivery, your purchase will go ahead (and you still have a 100 night trial to decide if you're happy with the bed.)
You should also be able to connect with the Sleep Number app and contact customer support if you run into any issues.
For those who already own a Sleep Number mattress, you'll know the integrated sleep tracking and smartphone-based controls are integral to the brand's high-tech comfort.
Sleep Number assured in a statement that the App and infrastructure will remain operational "as they are today." In addition, the support team will remain contactable through the usual channels.
“As we move through this process, we are focused on serving our customers and supporting our partners. Our team is dedicated to advancing our new product line and continuing to serve current and future customers every day. We thank them, along with our partners and suppliers, for their continued support," said Findley.
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