Court Clears Major Acquisition Deal

Sleep Number has been granted permission from the court to sell most of its assets along with its current business activities to SNBR Inc., which is a wholly-owned subsidiary of Sleep Country Canada Inc. This approval represents a very important milestone for the company in its restructuring journey following the improved offer made as a result of the bidding process.

The deal will help Sleep Number in securing its future through the creation of one of the largest bed and mattress manufacturers in North America. It is believed that executives of the company will be able to serve a broader customer base through the introduction of new sleep products.

Auction Increases Purchase Price

The value of the deal stood at about $701 million, which is much more than the initial $415 million proposal that was made when Sleep Number went into the sale process under the supervision of the courts. The new deal involves $529.5 million in cash and Sleep Country Canada is going to take up some financial responsibility in the form of severances for the employees and some contract responsibilities.

The sale was approved by U.S. Bankruptcy Judge Mike Paek, who called it a great accomplishment for such a short period of time.

Business Continues Without Disruption

According to Sleep Number, the daily operations of the company will go on during the period when the change in the ownership will take place. Consumers are able to make purchases from their online store and from shops, have mattresses delivered, and receive warranties as usual. Normal operations were named as a high priority of the company at the moment of closing the deal.

Linda Findley, President and CEO of the company, said that the process of restructuring was meant to solve the problems with finances of the company and build a successful future for it. According to her, partnership with Sleep Country Canada means success for the future.

Financial Challenges Led to Bankruptcy

Sleep Number filed for Chapter 11 bankruptcy in June owing to the financial troubles arising from the debts amounting to $672 million that Sleep Number owed. Financial troubles have been linked to inflation, tariffs, logistical problems, and poor performance of business in 2025 and the beginning of 2026. Sleep Number generated revenues of $319 million in the first quarter of 2026 while making a loss of $50 million. At present, Sleep Number has 572 retail outlets in America employing nearly 2,920 workers.

Sleep Number will develop a better North American bed business through this merger due to its smart mattress technology coupled with the 300-plus store network of Sleep Country Canada in Canada.