By Daily Mail (U.S.) | Created at 2026-07-23 15:46:52 | Updated at 2026-07-23 18:08:37
2 hours ago
Just months after announcing NFL superstar Travis Kelce as one of its biggest investors, Sleep Number has taken another dramatic step in its bankruptcy saga.
The premium mattress retailer has won court approval to sell its assets for $701 million after a bidding war pushed the price almost $287 million higher than the company's initial offer.
The deal marks the latest casualty of America's ongoing retail apocalypse, as even well-known brands backed by celebrity endorsements struggle against inflation, tariffs and consumers pulling back on big-ticket purchases.
A US bankruptcy judge on Monday approved the sale of Sleep Number's assets to Canadian retailer Sleep Country, calling the outcome a 'remarkable' success after a fast-moving auction process.
Sleep Country will pay $529.5 million in cash while also taking on millions of dollars in employee severance costs, contract obligations and other liabilities, bringing the total value of the transaction to roughly $701 million.
The sale is expected to close on July 31.
'We see tremendous opportunities ahead to build a leading North American mattress and bedding company that helps customers improve sleep and wellbeing,' Sleep Number CEO Linda Findley said in a statement following the court's approval.
The winning bid came after Sleep Country dramatically increased its original $415 million offer during last week's bankruptcy auction. Mattress manufacturer Brooklyn Bedding served as the backup bidder.
Sleep Number has filed for Chapter 11 bankruptcy protection after struggling with mounting debt, rising costs and weakening consumer demand
Earlier this year, Sleep Number unveiled one of its biggest marketing partnerships to date by signing Kansas City Chiefs tight end Travis Kelce as both a brand ambassador and investor
The sale follows Sleep Number's Chapter 11 bankruptcy filing in June, when the Minnesota-based company revealed it was carrying approximately $672 million in debt.
Executives blamed a combination of tariffs, inflation, weakening consumer demand and supply-chain disruption for pushing the once high-flying retailer into financial distress.
Higher interest rates have also hit demand for premium home furnishings, with many Americans delaying expensive discretionary purchases such as high-end mattresses.
The company reported $319 million in first-quarter sales but still posted a $50 million net loss, underscoring the financial pressures facing the retailer.
The bankruptcy represents a stunning reversal for a company that spent decades building a reputation around premium sleep technology and celebrity endorsements.
Earlier this year, Sleep Number unveiled one of its biggest marketing partnerships to date by signing Kansas City Chiefs tight end Travis Kelce as both a brand ambassador and investor.
Under the agreement announced in January, Kelce agreed to purchase shares in the company and receive additional restricted stock over three years, making him one of Sleep Number's largest shareholders with a stake of just under five percent.
The three-time Super Bowl champion, who has slept on a Sleep Number bed since 2019, described becoming an investor as a 'natural next step.'
Higher interest rates , inflation and economic uncertainty have made shoppers increasingly cautious about spending thousands of dollars on premium sleep products
'This partnership reflects my confidence in where the company is headed and the growing opportunity around sleep,' Kelce said at the time.
The investment came shortly after Kelce also took a stake in Six Flags Entertainment and added to a growing portfolio of consumer brands that includes Garage Beer and Casa Azul tequila soda.
Sleep Number hoped Kelce's popularity - bolstered by his relationship with Taylor Swift - would help attract younger consumers to the brand.
The company has long marketed itself as the mattress choice of elite athletes.
Since 2018, it has served as the NFL's Official Sleep and Wellness Partner, claiming that roughly 83 percent of eligible active NFL players use its smart beds to monitor recovery and improve sleep quality.
Its marketing campaigns have featured stars including Kelce, Minnesota Vikings receiver Justin Jefferson and Los Angeles Rams quarterback Matthew Stafford.
Founded in 1987 as Select Comfort by husband-and-wife entrepreneurs Robert and JoAnn Walker, the company grew into one of America's best-known premium mattress brands before rebranding as Sleep Number in 2017.
Its signature adjustable smart beds, which can cost well over $5,000, promised customers personalized comfort settings alongside biometric sleep tracking.
'While we have made significant progress improving our operations and strengthening our business, our capital structure remains unsustainable,' Sleep Number CEO Linda Findley said
Despite efforts to refinance debt, streamline operations, close stores and simplify its product range, the company ultimately concluded that its financial structure was no longer sustainable.
'While we have made significant progress improving our operations and strengthening our business, our capital structure remains unsustainable,' Findley previously said.
The proposed acquisition will combine Sleep Number's 572 US stores with Sleep Country's network of more than 300 Canadian locations, creating one of North America's largest mattress retailers.
Sleep Number currently employs approximately 2,920 people.
For existing customers, the bankruptcy proceedings are not expected to interrupt day-to-day operations.
The company has said stores will remain open, online sales will continue, deliveries will proceed as normal, and warranties, sleep trials and smart-bed functionality will remain in place throughout the restructuring process.
The sale comes as retailers across multiple sectors continue grappling with persistent economic headwinds.
Higher borrowing costs, inflation and uncertainty over tariffs have weighed heavily on furniture and home goods retailers, where shoppers often postpone expensive purchases during periods of financial pressure.
Sleep Number's downfall highlights how even nationally recognized brands with celebrity endorsements and loyal customer bases have struggled to escape those broader market forces.
