🛌New Chapter 11 Bankruptcy Filing - Sleep Number Corp. ($SNBR)🛌
Bed seller files bankruptcy to consummate sale transaction that renders lenders impaired.
On June 12, 2026, Minnesota-based Sleep Number Corp. ($SNBR) and four affiliates (collectively, the “debtors” or the “company”) filed chapter 11 bankruptcy cases in the … 🤔 … Southern District of New York (Judge Kyu Young Paek) to effectuate a combination transaction with Sleep Country Canada (“Sleep Country”) pursuant to section 363 of the bankruptcy code — and all we have to say is “thank the lord almighty for finally putting this thing to bed!” We’ve covered the “wellness technology company” that makes “life-changing, differentiated smart beds,” extensively over the last several months (here, here, here and here) so we’ll keep this to the highlights:*
📍The Final Sign. As if the company’s piss poor performance and retention of a slate or professionals wasn’t enough of a preview of the BK to come, the final indicator came in the past week+ when, on June 10, 2026, the company announced the June 4th addition** of Colin Adams to its board of directors.
Mr. Adams is well-known in RX circles; he’s currently a Partner at advisory shop Uzzi & Lall (after stints at, among other places, Morgan Stanley, Citadel Securities and Kirkland & Ellis LLP); he also has a list of trustee and independent director gigs as part of his resume. He’ll be comped $40k/month subject to the super nebulous qualifier that he’s eligible for “…other additional fees if he is required to be involved in additional activities.” Uh, ooook. What additional activities, exactly, guys? Travis Kelce’s replacement as brand ambassador, 😜?***
📍The Transaction. Subject to an expedited market test (following pre-petition marketing activity), Sleep Country will, as stalking horse purchaser, acquire substantially all of the assets of the company for $415mm in cash + the assumption of certain liabilities (subject to certain potential purchase price adjustments). The sale is supported by the debtors’ prepetition lenders and agent. Per Executive Vice President, Chief Financial Officer and first day declarant Amy O’Keefe, the sale “…will (a) ensure that Sleep Number, a prominent American brand, continues as a going concern, (b) support Sleep Number’s ongoing relationships with its employees, customers, vendors, suppliers, and business partners, and (c) position Sleep Number for long-term success.” Wait. Inquiring minds want to know: does that include Travis?!?