Quick Answer: Yes. Sleep Number filed for Chapter 11 bankruptcy on June 12, 2026, and agreed to sell itself to Canada's largest mattress retailer for about $415 million. It is a court-supervised sale, not a shutdown: stores stay open and the app keeps working, but long-term warranties could be at risk. Here is what it means for mattress shoppers.
Update July 16, 2026: The court hearing to approve the sale, originally set for July 15, has been adjourned to July 20, 2026, according to the case docket maintained by Kroll Restructuring Administration. No competing bid has been publicly reported, so the Canadian retailer's affiliate remains the lead buyer at about $415 million, and the companies have said they aim to close the sale by July 31. Until the judge signs the sale order, the deal is agreed but not yet court-approved. For Canadian shoppers, nothing changes yet: the buyer, already the largest mattress retailer in Canada, is still positioned to absorb Sleep Number's smart-bed business, and the warranty and app questions below apply exactly as written. We will update this page again once the sale order is entered.
There are simpler routes to a properly fitted mattress than an air-chamber system.Sleep Number is a 39-year-old American smart-bed maker, based in Minneapolis, known for its adjustable air-chamber mattresses and the SleepIQ app. On June 12, 2026, the company filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. Under the agreement, Canada's largest mattress retailer would buy substantially all of Sleep Number's assets for roughly $415 million, subject to a court auction and a judge's approval. At Mattress Miracle in Brantford, customers started asking about it the same morning the news broke, so here is a plain-language read on what actually happened.
"A mattress is a ten to fifteen year purchase. When you buy one, you are also buying the promise behind it, the warranty, the service, the person who picks up the phone. In 40-plus years I have watched plenty of big names change hands or vanish, and it is the customers left holding the warranty who feel it. That is the real story here, not the headline."
Brad Grose, founder, Mattress Miracle, family owned in Brantford since 1997, with 40+ years in the mattress industry
A Chapter 11 "going-concern" sale means a company keeps operating while a court oversees its transfer to a new owner, instead of closing the doors and liquidating inventory. Shoppers usually keep getting service during the process. The catch is that unsecured promises, like a 15-year warranty, can be renegotiated or reduced by the court. That distinction is the whole ballgame for anyone who owns one of these beds or is thinking about buying a smart mattress.
In This Guide
Reading time: about 7 minutes
Did Sleep Number really go bankrupt?
Sleep Number did file for bankruptcy, but the word needs context. On June 12, 2026, Sleep Number filed for Chapter 11, which is the part of U.S. bankruptcy law used to reorganize or sell a business, not to liquidate it overnight. The company lined up as much as $260 million in court-approved financing to keep the lights on, and it says its 572 stores stay open, vendors get paid, and day-to-day operations continue.
The plan is a sale. The Canadian retail chain is the lead bidder, sometimes called the "stalking horse," with an offer of about $415 million. The court approved bidding procedures on July 2, 2026, with a bid deadline of July 8 and an auction slot on July 13 in case a higher bid came in. The sale-approval hearing, originally set for July 15, was adjourned to July 20, 2026, with the close still aimed at July 31. In short, Sleep Number is changing owners through a court process, not disappearing from the mattress world.
Who is buying Sleep Number?
The buyer is Canada's largest mattress retail chain, and that is where the story gets interesting for anyone shopping in Canada. The chain has around 300 stores and was taken private in October 2024 by Fairfax Financial in a deal worth about $1.7 billion. Over the past several years it has been buying up the brands you see advertised online. Sleep Number would be its biggest catch yet, and its first major move into the United States.
If a few of those names look familiar, that is the point. Many shoppers think they are choosing between rival brands when several already sit under one roof. We walked through the whole family tree in our look at how one company quietly bought Endy, Casper, Silk & Snow and Hush. Here is where Sleep Number fits in.
| Brand | What it is | Joined the group |
|---|---|---|
| Core retail banners / Dormez-vous | The core retail banners (largest in Canada and in Quebec) | Core business |
| Endy | Canadian bed-in-a-box pioneer | 2018 (about $89M) |
| Silk & Snow | Toronto online mattress and bedding brand | January 2023 |
| Casper Canada | Canadian operations of the U.S. brand, sold after Casper's own 2022 bankruptcy | April 2023 |
| Hush | Weighted blankets and bedding | Recent acquisition |
| Sleep Number | U.S. smart-bed maker | 2026 (pending court approval) |
There is a pattern worth noticing. The chain already grew once by buying a struggling brand out of bankruptcy, when it picked up Casper's Canadian business in 2023. Sleep Number would be the same play on a much bigger stage. You can read more about the parent company in our overview of the brands it owns.
Why did Sleep Number go bankrupt?
Sleep Number did not collapse overnight. The bankruptcy is the end of a slow squeeze. Full-year 2025 revenue fell 16 percent to about $1.4 billion, and the company posted a net loss of roughly $132 million, compared with a $20 million loss the year before. It entered the filing carrying around $672 million in funded debt, with total liabilities listed near $1.3 billion in court documents.
Three forces behind the filing
Soft demand. People bought fewer new mattresses across the whole industry after the pandemic-era boom, and Sleep Number's premium prices made it an easy purchase to delay.
Debt. Years of losses left the company owing far more than its slowing sales could comfortably service, and it warned investors it expected to break its loan covenants in 2026.
Tariffs. The company pointed to unpredictable U.S. tariff policy raising the cost of the electronics and components inside its smart beds, squeezing already thin margins. The financial pressure, not the product itself, is what tipped it into court.
It is a useful reminder that a brand can run popular advertising and still be in trouble underneath. Sleep Number even won customer-satisfaction awards in recent years while the balance sheet was sliding. The marketing and the money are two different things.
What happens to my warranty and smart bed?
If you own a Sleep Number bed, the honest answer is that most things keep working for now, but a couple of things are worth watching. The company says stores stay open and the SleepIQ app that controls the bed's firmness and tracking will keep running. The two areas that carry real risk in any Chapter 11 are long-term warranties and long-term software support.
Here is the part shoppers do not always know. In bankruptcy, a long-term warranty can be treated as an unsecured claim. If the court lets the company step away from those obligations, warranty holders fall in line behind banks and bondholders, and unsecured claims often pay little or nothing. A new owner may choose to honour warranties to protect the brand's reputation, but that is a business decision, not a guarantee. This is exactly why it pays to understand what a mattress warranty actually covers before you rely on it.
"The first thing people ask when a brand is in the news is, who do I call now. If you have a warranty claim, get it in writing today and keep your receipt, your model and your comfort settings. A claim already in motion sits in a much better spot than one you start later."
Dorothy Balicki, Mattress Miracle
If you own a Sleep Number bed, do this now
- File any pending claim in writing. Submit it now, keep copies, and note the date. Claims already in process tend to be treated better than new ones.
- Write down your settings offline. Record your firmness numbers and bed model on paper, not only in the app, in case software support changes later.
- Keep your proof of purchase. Receipt, registration and serial numbers all matter if you ever need to make a claim.
- Do not panic-buy. Your bed still works today. This is about protecting your paperwork, not replacing your mattress this week.
What it means for Canadian mattress shoppers
For Canadian shoppers, the practical takeaway is less about Sleep Number itself, which has never had a big retail presence here, and more about what the story teaches. A mattress is a long purchase, so the stability of whoever stands behind it matters as much as the comfort layers. It is also a reminder of how much of the online mattress aisle now answers to a single owner. If you want options outside that ecosystem, it helps to know who you are actually buying from. For the brand-specific picture, see our guide to Sleep Number in Canada. We mapped the full picture, U.S. makers included, in who owns the mattress industry now.
"A Sleep Number bed is part mattress, part electronics. The air chambers, the remote and the sleep tracking all lean on the company's app and servers. A simple, well-built mattress does not stop working if a head office has a rough year. When people ask us about smart beds, that trade-off is exactly what we walk them through."
Talia Grose, sleep specialist, Mattress Miracle
Why a local, family-owned store reads differently right now
Mattress Miracle has been family owned in Brantford since 1997, with more than 40 years in the mattress industry behind it. When you buy from us, the warranty conversation is with the same family that sold you the bed, not a call centre tied to a company's quarterly results. We also carry plenty of Canadian-made mattresses, including our flippable Sleep In line, that are simple, well-built, and yours to own outright with no app required. If you do want the adjustable experience, our adjustable beds are a different path to it.
None of this is a victory lap. Sleep Number employs nearly 3,000 people, and a lot of families are watching this play out. The point is simpler and a little old-fashioned. Buy from someone who will still be there to answer the phone, and know exactly what you are counting on when a warranty is part of the deal.
Frequently Asked Questions
Is Sleep Number going out of business?
Not in the sense of closing for good. Sleep Number filed for Chapter 11 bankruptcy in June 2026 and agreed to be sold to Canada's largest mattress retailer through a court process. Stores stay open and the company keeps operating during the sale. The brand is changing owners, not shutting down.
Will my Sleep Number warranty still be honoured?
Maybe, but it is not guaranteed. In bankruptcy, long-term warranties can become unsecured claims, which often pay little or nothing if the court lets the company drop them. A new owner may choose to honour them to protect the brand. If you have a claim, file it in writing now and keep your records. For how warranties work in general, see our mattress warranty guide.
Will my Sleep Number app and smart bed keep working?
For now, yes. The company has said the SleepIQ app and stores will keep running through the process. The longer-term question is server and software support after the sale closes. As a precaution, write your firmness settings and bed model down offline so you are not relying only on the app.
Who is buying Sleep Number?
Canada's largest mattress retailer is the lead bidder, with an offer around $415 million. The chain is owned by Fairfax Financial since 2024 and already owns Endy, Casper Canada, Silk & Snow and Hush. No competing bid has been publicly reported, and the court hearing to approve the sale was adjourned to July 20, 2026.
Does Mattress Miracle in Brantford sell Sleep Number?
No. We carry Canadian-made and premium mattress lines like Sleep In and Restonic, plus adjustable beds, rather than smart air beds. If you are weighing a tech-heavy bed against a simpler one you own outright, come talk it through with us in Brantford. No pressure, just a straight answer.
Visit Our Brantford Showroom
Mattress Miracle
441 1/2 West Street, Brantford
Phone: (519) 770-0001
Hours: Mon-Wed 10-6, Thu-Fri 10-7, Sat 10-5, Sun 12-4
Wondering whether a smart bed or a simple, well-built mattress is the better bet for you? Come try a few in person and ask us anything. We are happy to give you the honest version.
Related Reading
- Who Owns Your Mattress? How One Company Bought Endy, Casper, Silk & Snow and Hush
- Sleep Number in Canada: What to Know
- Mattress Warranty Guide: What Is Actually Covered
- Does a Bed in a Box Really Work in Canada?
Sources
- CNBC, "Mattress company Sleep Number plans $415 million bankruptcy sale," June 12, 2026.
- Retail Dive, "Sleep Number files bankruptcy, inks merger deal," June 2026.
- Star Tribune, "Sleep Number runs out of time, files for bankruptcy protection," June 12, 2026.
- BNN Bloomberg, coverage of the Fairfax Financial $1.7 billion mattress-retail acquisition, July 22, 2024.
- CTV News and Globe and Mail, coverage of the 2018 Endy acquisition.
- GetOutOfDebt.org, "Sleep Number Bankruptcy: What It Means for Customers," June 2026.
- Kroll Restructuring Administration, Sleep Number Corporation case docket (bidding procedures order July 2, 2026; adjourned sale hearing July 20, 2026).