Sleep Number bankruptcy: Minnesota company announces merger with Sleep Country Canada

MINNEAPOLIS (FOX 9) - Sleep Number, a Minnesota-based company, announced it is combining with Sleep Country Canada as it enters a court-supervised sale process. 

Sleep Number combining with Sleep Country Canada 

What they're saying:

Sleep Number has agreed to combine with Sleep Country Canada, aiming to create a leading mattress and bedding company serving both the United States and Canada. 

The move comes as Sleep Number begins a voluntary Chapter 11 sales process, which the company says will help address financial challenges and support future growth.

President and CEO of Sleep Number Linda Findley shared the following statement:

"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. 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."

President and CEO of Sleep Country Canada shared the following statement:

"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."

What's next:

Sleep Number said customers can continue shopping online and in stores.

The company adds that it plans to keep manufacturing its products in the United States after the deal closes. 

By the numbers:

Sleep Number expects to secure up to $260 million in financing to support operations during this period, including up to $65 million in new funding. 

The company has filed motions to keep paying employees and suppliers and will continue reviewing its store footprint, aiming to keep as many locations open as possible. Leases for 44 already-closed stores will be rejected as part of the process.

The transaction is subject to higher offers, court approval, and other closing conditions. Sleep Country Canada is serving as the "stalking horse" bidder, meaning other bids may still be considered. 

The Source: This story uses information shared by Sleep Number.