The quotes of the largest mattress retailer in the US collapsed. He filed for bankruptcy
The securities of the largest mattress retailer in the U.S. - Sleep Number Corporation - collapsed by more than 40% / Photo: sleepnumber.com
Shares of Sleep Number Corporation, the largest U.S. mattress retailer, plummeted more than 40% on June 12. The company said it has filed for bankruptcy and plans to sell the business to a Canadian competitor as part of the proceedings. Although the U.S. bed and mattress sector has grown in 2025, some major players are claiming a historic downturn in the industry, The Street writes.
Details
Sleep Number's micro-cap securities fell more than 40% to $0.4 on the Nasdaq on June 12.
This comes after the retailer said it had agreed to merge with Canadian rival Sleep Country Canada and filed for Chapter 11 bankruptcy to facilitate the deal. It applies to save a business from closure and provides for reorganization rather than liquidation.
The court-supervised merger will allow Sleep Number to solve its financial problems and expand its business, says CEO Linda Findlay (her words are quoted in the report).
As part of the bankruptcy proceedings, Sleep Number expects to raise up to $260 million, which, together with proceeds from its current operations, will be enough to continue operations during the litigation, according to a press release.
It also states that the deal with the Canadian company will go through if approved by the court and if no more favorable offers emerge during the restructuring.
What's happening to the company and the industry
Sleep Number has been struggling to overcome the recession and return to growth for some time. In 2025, it changed its CEO and appointed Findlay to the position, revamped its product line, cut costs and hired Guggenheim Securities to explore opportunities including increased liquidity.
Despite that, the company's net revenue fell 16% to $1.4 billion last year, while its net loss jumped 6.6 times to $132 million. In documents filed with the court, the company claimed $642 million in assets and $1.28 billion in debt.
Sleep Number has not had enough time to complete the recovery, GlobalData managing director Neil Saunders told Retail Dive. He believes the mattress market has become extremely competitive, with companies such as Mattress Firm offering a wider range and different price points.
The Street points out that Sleep Number is not the only retailer in the industry facing difficulties. Earlier, the Ortho Mattress chain filed for bankruptcy under the same article.
