MINNEAPOLIS \u2014 Mattress manufacturer Sleep Number filed for Chapter 11 bankruptcy on Friday and has a deal in place to be acquired by Sleep Country Canada for $415 million.<\/p>\n
The Minneapolis-based company filed in U.S. Bankruptcy Court in the Southern District of New York, the Minnesota Star Tribune<\/a> reported.<\/p>\n Sleep Number secured a \u201cstalking horse\u201d bidder in Sleep Country Canada. The stalking horse sets the bottom price and blocks below-market offers, according to The Wall Street Journal<\/a>.<\/p>\n Sleep Country Canada\u2019s offer must be approved by the bankruptcy court.<\/p>\n Under the terms of Friday\u2019s deal, Sleep Country Canada created a U.S. subsidiary called SNBR, which is Sleep Number\u2019s ticker symbol, to buy the company, the Star Tribune<\/a> reported.<\/p>\n Sleep Number said its stores will remain open during regular business hours, and its online site will continue to accept orders while the bankruptcy filings proceed, according to The Wall Street Journal<\/a>.<\/p>\n In addition to its cash offer, SNBR will assume certain liabilities, according to a filing with the U.S. Securities and Exchange Commission.<\/p>\n \u201cWhile we have made meaningful progress advancing our turnaround efforts and strengthening our operations, our capital structure remains unsustainable,\u201d Sleep Number CEO Linda Findley said in a statement<\/a>.<\/p>\n Sleep Country is Canada\u2019s largest mattress retailer with 307 outlets, according to the Star Tribune<\/a>.<\/p>\n It was taken private in 2024 by Canadian conglomerate Fairfax Financial, The Wall Street Journal<\/a> reported.<\/p>\n