Court Clears Sleep Number’s $415M Sale to Sleep Country Canada
The U.S. Bankruptcy Court for the Southern District of New York approved the sale of substantially all of Sleep Number’s assets to Sleep Country Canada for $415 million in cash plus the assumption of certain liabilities. Joele Frank, Wilkinson Brimmer Katcher advised Sleep Number on communications.
The path ran through Chapter 11. Sleep Number, the Minneapolis-based maker of adjustable Smart Beds and a Nasdaq-listed company under the ticker SNBR, filed for bankruptcy protection on June 12, 2026, carrying about $672.5 million in debt, and entered an asset purchase agreement with Sleep Country as it filed. Court filings pointed to tariff and inflation pressure, which raised costs and disrupted the company’s supply chain, among the strains on its balance sheet. Joele Frank fielded press for Sleep Number as it entered court protection.
The sale moved under Section 363 of the Bankruptcy Code. Sleep Country, Canada’s largest mattress retailer, served as the stalking-horse bidder, a structure that set a floor price while keeping the agreement open to higher and better offers through a court-supervised auction. After that auction concluded, the court approved the sale on July 20. The combination creates a North American retail network of more than 800 store locations that pairs Sleep Number’s U.S. footprint with Sleep Country’s Canadian base. Sleep Number kept its stores open and its business running through the sale, so the court’s approval moved the company toward new ownership rather than a liquidation. The team at Joele Frank handled press for Sleep Number across the filing, the auction and the sale order.
Joele Frank, Wilkinson Brimmer Katcher served as communications adviser to Sleep Number.
A 363 sale lets a company move its assets to a buyer free of most prior claims, and it has become a common route for retailers working through balance-sheet distress. For Sleep Number, the process carried the business to an industry buyer rather than a wind-down. Stores stayed open, and a brand with a national footprint kept its name. For Sleep Country Canada, the purchase extends its reach into the United States and folds a recognized mattress name into its network. Joele Frank ran communications for Sleep Number at every stage, from the June filing to the July sale order.
