Following its Chapter 11 bankruptcy protection filing last week, Sleep Number has agreed to partner with Sleep Country Canada to merge the two companies.
As part of the voluntary Chapter 11 process, Sleep Country Canada will serve as the stalking horse bidder in a court-supervised sale. But the proposed transaction remains subject to other offers, court approval, and othercustomary closing conditions.
Sleep Number lists assets of between $500 million to $1 billion, and liabilities of between $1 billion and $10 billion. It said it expects to secure up to $260 million in debtor-in-possession financing, including up to $65 million in new financing, to support operations during the court-supervised process.
As part of the restructuring process, Sleep Number said it will continue evaluating its retail footprint.
The company said its goal is to maintain as many retail locations as possible based on profitability. It has filed a motion seeking court approval to reject leases associated with 44 non-operational locations that had already been closed and were not serving customers.
