Sleep Number, a Minneapolis-based mattress company, has filed for Chapter 11 bankruptcy protection while announcing a merger with Canada's Sleep Country. The merger aims to create a leading North American mattress entity, allowing both operations and stores to continue normally during the financial transition. CEO Linda Findley stated the merger would help address unsustainable financial structures and promote future business expansion. Sleep Number has around 570 stores, with 14 located in Minnesota.

Sleep Number files for bankruptcy protection, announces merger with Canadian firm

The Minneapolis company says its stores remain open and its website is still taking orders.

Jun 12, 2026 10:41 AM EDT

By Adam Uren

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Minneapolis-based mattress chain Sleep Number has filed for bankruptcy protection and announced it intends to merge with a Canadian company.

The company confirmed in a Friday press release that it has entered into an agreement to combine with Sleep Country Canada, which it says will create a “leading North American mattress and bedding company.”

Sleep Number says it has “initiated a voluntary Chapter 11 sale process” in U.S. Bankruptcy Court in order to facilitate the merger.

Stores and online operations will continue as normal during the transition, with the announcement saying customers can continue shopping for Sleep Number products, and manufacturing of beds, mattresses, and other items will continue.

Sleep Number has its head office at 1001 3rd Ave. S. in downtown Minneapolis, though it was reported earlier this year that the building had been sold and part of it was converted into a data center, with Sleep Number operating from a smaller space in the property.

Last year the company commenced a 21% cut in management roles as part of an effort to trim costs by up to $100 million after recording a quarterly loss of $393 million.

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“For 40 years, Sleep Number has been a leader in sleep innovation, helping millions of customers improve their health and well-being through personalized sleep solutions. While we have made meaningful progress advancing our turnaround efforts and strengthening our operations, our capital structure remains unsustainable,” said Linda Findley, President and CEO of Sleep Number.

“Following a comprehensive review of our strategic options and a robust sale process, we are confident that moving forward with the Sleep Country Canada agreement and this court-supervised sale process will enable us to address our financial constraints. It will also position us to expand our business, helping more people achieve their best sleep both in the United States, and through future international expansion.”

Sleep Number has around 570 stores nationwide, of which 14 are in Minnesota. Nine of those are in the Twin Cities metro, with the others in Duluth, Rochester, Mankato, St. Cloud, and Baxter.

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Adam Uren

Adam Uren is the head of Minnesota and Western Wisconsin news coverage for Bring Me The News.

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