Iconic mattress brand Sleep Number files for bankruptcy after 39 years

After nearly four decades in business, mattress company Sleep Number is entering bankruptcy while looking for a new owner. The brand filed for bankruptcy protection last week as part of a plan to sell its assets to Canadian bedding retailer Sleep Country Canada. The proposed deal is reportedly valued at approximately $415 million.

According to company CEO Linda Findley, the move follows a review of strategic options and is intended to help the company address financial challenges while continuing operations. In other words, this is not a shutdown but a restructuring effort aimed at keeping the business alive under new ownership.

How did the company get here?

The company listed several factors such as inflation, higher operating costs, tariffs, and softer consumer spending as some of the challenges it faces. Those challenges have been especially tough for companies selling premium products. Sleep Number's products fall into that category.

The company's adjustable smart mattresses can range from around $1,599 to more than $11,000, making them one of the higher-priced options in the sleep industry.

The company's most recent financial filing does paint a difficult picture. For the first quarter of 2026, it reported $319 million in net sales and a net loss of $50 million. Coupled with the fact that the company employs roughly 2,920 workers, those figures help explain why management ultimately decided a sale was the best path forward.

Customers can still buy mattresses

If you are a Sleep Number customer or you intend to patronize the business soon, your plans are not affected, as the company says business will continue as usual for now. That includes retail store operations, online sales, the 100-night trial program, existing warranties, reward points, gift cards, and store credits.

So despite the bankruptcy filing, shoppers shouldn't see an immediate interruption in service.

Source: AL.com