Sleep Number Corp. (NASDAQ:SNBR) shares plunged 31% in after-hours trading on Wednesday after the company disclosed that Nasdaq plans to delist its common stock following the mattress maker's recent Chapter 11 bankruptcy filing.
Sleep Number is a sleep wellness company known for its smart mattresses, adjustable beds and sleep technology products.
Delisting Notice Sparks Fresh Selling
Sleep Number said in an SEC Form 8-K filing that it received a notice from The Nasdaq Stock Market on June 16 stating the exchange has determined to delist the company's shares.
The decision follows the company's previously announced Chapter 11 bankruptcy filing on June 12. Nasdaq cited public interest concerns, uncertainty around residual equity value for common shareholders and concerns about the company's ability to maintain listing compliance.
