We are representing Sleep Number and its affiliates in their chapter 11 cases

Davis Polk is advising Sleep Number Corporation and its affiliates (collectively, “Sleep Number”) in connection with their cases under chapter 11 of the United States Bankruptcy Code. Sleep Number commenced the chapter 11 cases to effectuate a sale of substantially all of the company’s assets as a going concern business.

Immediately prior to the chapter 11 filing, Sleep Number entered into an asset purchase agreement for the sale of substantially all of its assets with SNBR Inc. (an affiliate of Sleep Country Canada Inc., the largest specialty mattress retailer in Canada), which has agreed to act as the stalking horse bidder through a court-supervised sale process. Sleep Number intends to continue its prepetition marketing process in chapter 11 to obtain the highest or otherwise best bid in the going-concern sale of its assets.

On June 12, 2026, Sleep Number filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the Southern District of New York. At a hearing that same day, Judge Kyu Y. (Mike) Paek approved Sleep Number’s debtor-in-possession financing on an interim basis, which authorized Sleep Number to access and use financing commitments provided by its existing lenders under a $260 million debtor-in-possession credit facility, including up to $65 million in new financing. In addition, the Court granted substantially all of the relief requested by Sleep Number in its first-day motions, including the authority to pay critical vendor obligations, taxes, insurance obligations and employee wages and benefits.

Sleep Number is the leader in personalized sleep wellness. Its mattresses are designed to evolve with each sleeper to help them feel and perform their best. Headquartered in Minneapolis, Minnesota, Sleep Number employs approximately 2,920 employees and operates 572 Sleep Number stores with locations in 50 U.S. states.

The Davis Polk restructuring team includes partners Brian M. Resnick and Angela M. Libby, counsel Stephen D. Piraino and Richard J. Steinberg, associates Sihui (Sophy) Ma, Katharine Somers, Motty (Mordechai) Rivkin, Eva (Luying) Wang, Katharine O’Neill and Tashanique (Tasha) Brown. The finance team includes partners Hilary Dengel and Robert F. Smith and counsel Louis Quagliato. The corporate team includes partners Brian Wolfe and Lee Parnes, counsel F. Adam Abulawi, and associate Leon Ren. Partner Corey M. Goodman is providing tax advice. Partner Arthur J. Burke is providing antitrust and competition advice. Partner Veronica M. Wissel is providing executive compensation advice. Partner Elliot Moskowitz is providing litigation advice. Partner Frank Azzopardi is providing intellectual property advice. All members of the of the Davis Polk team are based in the New York office.

Copy link to share post