Sleep Number Corporation Completes Asset Sale in Chapter 11

What Happened

• Sleep Number Corporation (SNBRQ) filed Chapter 11 petitions on June 12, 2026 (In re: Sleep Number Corporation, et al., Case No. 26-11399). The Bankruptcy Court approved an Amended and Restated Asset Purchase Agreement with SNBR, Inc. (a Sleep Country Canada Inc. subsidiary), and the parties closed the sale of substantially all of Sleep Number’s assets on July 31, 2026. Cash proceeds from the Asset Sale were $529.5 million.
• Of that amount, approximately $267.4 million was used to repay debtor-in-possession term loans, roll-up loans and related fees/expenses, and $10.0 million was placed in escrow for post-closing adjustments. The company states it does not expect any proceeds will be available for distribution to common stockholders; upon effectiveness of the liquidation plan the company’s outstanding common stock will be cancelled.

Key Details

• Chapter 11 filings: June 12, 2026; Bankruptcy Court case No. 26-11399.
• Sale approval: Bankruptcy Court Sale Order entered July 21, 2026; sale closed July 31, 2026.
• Cash proceeds: $529.5 million total; ~$267.4 million repaid to DIP/roll-up lenders; $10.0 million escrowed.
• Stockholder impact: Company does not expect distributions to common stockholders; outstanding common stock will be cancelled upon plan effectiveness.
• Financial disclosure: Company reported it is unable to prepare pro forma financial information reflecting the transaction.

Why It Matters

• For investors, this confirms Sleep Number’s operations are being sold under Chapter 11 and the proceeds largely go to secured/priority creditors. Common shareholders should expect their equity to be cancelled and to receive no distribution from this sale according to the filing.
• The transaction advances the company’s liquidation process; future investor value will depend on the remaining Chapter 11 process and any final plan distributions to creditors.