Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsRetail & MarketingSleep Number files for bankruptcy sale to Sleep Country CanadaShares have plummeted roughly 95% over the past four monthsAuthor of the article:Last updated 10 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.A pedestrian walks past a Sleep Country Canada location in Toronto on June 19, 2018. Photo by Peter J ThompsonMattress maker Sleep Number Corp. filed bankruptcy with an agreement to sell the firm to one-time retail partner Sleep Country Canada Inc. after years of weak demand, mounting financial pressure and unpredictable tariffs.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorSleep Number blamed its bankruptcy, in part, on “the unpredictable shifting of trade rules imposed by the current U.S. government on top of an already vulnerable global supply chain,” according to a court filing Friday.Even after the U.S. Supreme Court struck down some of U.S. President Donald Trump’s tariffs, “the broader trade landscape remained complex and the company continued to manage ongoing regulatory uncertainties, particularly regarding potential alternative tariff frameworks that may be imposed” on U.S. imports, Chief Financial Officer Amy O’Keefe said in the filing.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againSleep Number filed for Chapter 11 protection from creditors in order to hold an auction, at which Sleep Country would be the so-called stalking horse bidder. Its all-cash opening offer for “substantially” all of the firm’s assets is US$415 million, O’Keefe said.Because the firm tried to sell itself in the months leading up to the Chapter 11 filing, O’Keefe said Sleep Number is seeking a 26-day sale process. Any competing bids would be due July 8 and the sale would close by July 31 under the company’s proposed timeline.Sleep Number, which operates 572 stores and is known for its customizable beds, will continue operations while seeking a quicker-than-usual court-supervised sale process, according to the filing.The company, whose shares have plunged more than 95 per cent the past four months, has been hurt by declining store traffic amid broader industry pressures.In response to mounting financial woes, O’Keefe said Sleep Number restructured its real estate portfolio and launched a number of cost-cutting initiatives in recent years. The firm had reported its operating costs fell by US$136 million last year, but its net loss still widened as net sales dropped 16 per cent.Sleep Number said in a statement that will continue to review its footprint with the aim of retaining as many retail locations as possible. It added that as much of US$65 million of new borrowing has been arranged to pay for the restructuring process. Sleep Number would also refinance US$195 million of older debt should the loan package be approved by the judge overseeing the bankruptcy case.The company listed assets of between US$500 million and US$1 billion and liabilities of between US$1 billion and US$10 billion, with lenders owned about US$672.5 million.The case is Sleep Number Corp., 26-11399, U.S. Bankruptcy Court, Southern District of New York (Manhattan). Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.