Sleep Number Corp

Somnigroup International Inc stands to benefit from the bankruptcy of its competitor Sleep Number Corporation, which filed for Chapter 11 on June 12. Sleep Number cited inflation, tariffs, and supply chain disruptions as it reported a first-quarter 2026 net loss of $50 million on net sales of $319 million. Canadian bedding company Sleep Country Canada has offered $415 million for Sleep Number's assets. Analysts at Piper Sandler said the bankruptcy would allow Somnigroup to gain market share in the premium mattress space and could pursue store and intellectual property purchases in the bankruptcy process.

Sleep Number Corporation filed for Chapter 11 bankruptcy and agreed to sell substantially all of its assets to Sleep Country Canada Inc. for $415 million in cash plus the assumption of certain liabilities. The Minneapolis-based smart-bed maker filed in the Southern District of New York with about $672.5 million in debt, citing tariffs and inflation as key reasons for its financial troubles. Under the agreement, Sleep Country Canada's subsidiary SNBR, Inc. will serve as the stalking horse bidder in a court-supervised sale process that remains open to higher bids, with an auction scheduled for July 13 if a competing offer emerges. The Chapter 11 process is being funded by a debtor-in-possession financing package of up to $260 million from current lenders, including $65 million in new funds. Sleep Number operates 572 U.S. retail locations and has roughly 2,920 employees, while Sleep Country Canada runs more than 300 stores throughout Canada.