Tradivore
  • Investing
  • Stock
  • Market Screener
  • Crypto Market
  • Podcast
Stock

Giant mattress retailer to sell chain in Chapter 11 bankruptcy

by admin May 30, 2026
May 30, 2026

The overall U.S. bed and mattress sector may have performed well in 2025, with revenue rising by 1.3% to $28.4 billion year over year, according to IbisWorld analysis, but some major mattress retailers say they are experiencing a historic industry recession.

Among the struggling mattress retailers is iconic chain Ortho Mattress, which filed for Chapter 11 bankruptcy to reorganize its business on June 1 in the U.S. Bankruptcy Court for the Central District of California.

A much larger mattress chain, Sleep Number, faces more serious economic issues requiring it to file bankruptcy and sell its business.

Sleep Number files bankruptcy

Sleep Number Corporation filed for Chapter 11 bankruptcy reorganization, seeking a sale of substantially all of its assets as a going concern to Canadian rival mattress retailer Sleep Country Canada Inc., as stalking-horse bidder for $415 million in cash and assumed liabilities.

The debtor has filed a bidding procedures motion, which calls for an auction to be held if a qualifying bid other than the stalking-horse bid is received before a bid deadline.

The debtor began a marketing process in February 2026 seeking to identify a stalking-horse bidder for the purchase of the company’s assets.

The Minneapolis-based mattress retail chain filed its petition on June 12, along with an asset purchase agreement, in the U.S. Bankruptcy Court for the Southern District of New York, listing $642 million in assets and $1.28 billion in debts, according to court papers provided by Kroll.

Sleep Number’s debts include $672.5 billion in secured credit facilities. The debtor’s largest unsecured creditors include Leggett & Platt Inc., owed over $10.2 million; Horizon Media, owed over $7.3 million; Elite Comfort Solutions, owed over $6.1 million; Flextronics International Europe, owed over $6 million; Gumotex, owed over $3.7 million; and NFL Ventures LLP, owed over $2.6 million.

Debtor seeks a $65 million DIP loan

The 39-year-old mattress retailer will seek bankruptcy court approval of a $65 million new money debtor-in-possession financing facility, along with a roll-up of $195 million in prepetition debt obligations.

“While we have made meaningful progress advancing our turnaround efforts and strengthening our operations, our capital structure remains unsustainable,” Sleep Number CEO Linda Findley said in a statement.

“Following a comprehensive review of our strategy 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,” Findley said.

Historic industry recession blamed

Sleep Number blamed industry-specific macroeconomic headwinds that strained its business and resources as the reason for its bankruptcy filing. The company said a market shift to e-commerce, a decline in foot traffic and in-store sales, difficulty in maintaining a sufficient real estate portfolio and distribution network and diminishing profit margins led the company to consider a bankruptcy filing, according to court papers.

A culmination of these issues resulted in a historic industry recession with the company facing increased competition in the mattress industry, a reduction in discretionary consumer spending, an unpredictable regulatory environment, increased inflation and interest rates, a less dependable supply chain, and a growing tariffs burden.

Sleep Country’s strong interest to buy

“Sleep Country has expressed a strong interest in acquiring the company’s assets since day 1 of the prepetition marketing process and has continued throughout the process to actively engage in diligence and negotiations with the company,” Sleep Number CFO Amy O’Keefe wrote in a June 12 declaration.

Sleep Number, founded in 1987, opened its first retail store in 1992. It operates 572 stores in 50 states and employs 2,920 workers.

The company has not announced any store closings or layoffs.

Sleep Country, founded in 1994, is Canada’s leading specialty sleep retailer with over 300 corporate-owned stores, court papers said.

Sleep Number financial data:

  • Total assets: $642 million
  • Total liabilities: $1.28 billion
  • Secured credit facilities: $672.5 million
  • Proposed sale price: $415 million cash plus liabilitiesSource: Bankruptcy Petition
previous post
Kroger draws serious scrutiny over digital price tags
next post
CHARBONE presentera a la conference Hydrogen East et annonce le developpement d’un hub d’approvisionnement dans le marche de l’Atlantique via sa filiale

You may also like

Why Intel stock is sinking around 6% on Thursday

September 10, 2026

Dow opens 280 pts lower as oil tops $100, fueling Fed rate hike concerns

September 9, 2026

ALLW: Is this Ray Dalio’s All Weather fund a good ETF to buy today?

September 8, 2026

Wall Street is about to lose a $1.1 trillion buyer: why stocks could get bumpier

September 7, 2026

More details of the mega Anthropic IPO are coming out: here’s what we know

September 6, 2026

Software stocks are back from the dead as AI fuels growth: can the rally continue?

September 5, 2026

Why is AMC stock gaining today?

September 4, 2026

Dow rises 390 pts as US stocks gain despite oil, Fed and Iran concerns

September 3, 2026

Why is MongoDB stock falling 13% despite strong Q2 results

September 2, 2026

Amazon stock falls on FTC lawsuit but analysts bullish despite near-term pressure

September 1, 2026

    Stay Updated

    Get the latest news, expert predictions, and top indicators.

    Popular Posts

    • 1

      Week Ahead: NIFTY Violates Short-Term Supports; Stays Tentative Devoid Of Any Major Triggers

      May 17, 2026
    • 2

      Tech Taps the Brakes, Homebuilders Hit the Gas: See the Rotation on StockCharts Today

      May 19, 2026
    • 3

      July Strength, Late-Summer Caution: 3 Charts to Watch

      May 20, 2026
    • 4

      The Best Five Sectors, #28

      May 18, 2026
    • 5

      The Real Drivers of This Market: AI, Semis & Robotics

      May 16, 2026

    Categories

    • Investing (234)
    • Stock (84)
    • About Us
    • Privacy Policy
    • Disclaimer

    © 2026 Tradivore.com — operated by Alpha One Marketers, LLC. All Rights Reserved.

    Tradivore
    • Investing
    • Stock
    • Market Screener
    • Crypto Market
    • Podcast