Monitor the July 9 final DIP order hearing and the asset sale auction process. The stalking horse bid provides a floor, but the common stock is likely to be cancelled in the reorganization. Watch for any superior bids or delays in the sale timeline that could extend the Chapter 11 process.
Price Chart
Executive Summary
Sleep Number Corp filed for Chapter 11 bankruptcy on June 12, 2026, and on June 16 entered a Fourteenth Amendment to its credit agreement establishing a $260M debtor-in-possession (DIP) financing facility. The DIP facility includes up to $65M in new money loans and up to $195M in roll-up loans converting prepetition debt, with a scheduled maturity of September 16, 2026. The company has a stalking horse asset purchase agreement with an affiliate of Sleep Country Canada, Inc. for a sale of substantially all assets, with milestones requiring consummation by July 31, 2026.
Key Facts
- Sleep Number filed Chapter 11 petitions on June 12, 2026
- Entered $260M DIP financing: $65M new money + $195M roll-up loans
- DIP loans bear interest at SOFR + 8.00% or base rate + 7.00%
- Interim DIP order entered June 15; final hearing scheduled July 9, 2026
- Scheduled maturity of DIP facility is September 16, 2026
- Stalking horse APA with SNBR Inc. (Sleep Country Canada affiliate) for asset sale
- Sale milestones: auction by July 13, sale order by July 15, consummation by July 31
- Common stock likely to be cancelled in Chapter 11 process
Financial Impact
Company in Chapter 11 with $260M DIP facility; common equity expected to be cancelled; prepetition debt of $677.5M total commitments; $20M prepetition 2026 term loans outstanding
Risk Factors
- Failure to consummate asset sale by July 31 could trigger DIP default and conversion to Chapter 7
- Common equity expected to be cancelled, rendering shares worthless
- Operational disruption and vendor/supplier concerns during bankruptcy
- Potential for creditor challenges to DIP facility or sale process
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000950103-26-009081 |
| Document: dp248436_8k.htm | 0000950103-26-009081 |
| Document: 0000950103-26-009081-index-headers.html | 0000950103-26-009081 |
| Document: 0000950103-26-009081-index.html | 0000950103-26-009081 |
| Document: 0000950103-26-009081.txt | 0000950103-26-009081 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 17, 2026 15w ago | 8-K | $0.2072 $0.1250 | ▲ +39.67% | ▲ +38.01% | — |
Jun 16, 2026 15w ago | 8-K | $0.3900 $0.1250 | ▲ +67.95% | ▲ +66.91% | — |
Jun 12, 2026 16w ago | 8-K | $0.3902 $0.2072 | ▲ +46.90% | ▲ +47.57% | — |
Jun 10, 2026 16w ago | 8-K | $0.6600 $0.3900 | ▼ −40.91% | ▼ −41.34% | — |
Jun 2, 2026 17w ago | 8-K | $1.07 $0.7400 | ▼ −30.84% | ▼ −27.02% | — |
May 12, 2026 20w ago | 8-K | $1.90 $1.55 | ▲ +18.42% | ▲ +18.50% | — |
Apr 28, 2026 22w ago | 8-K | $3.25 $2.68 | ▲ +17.54% | ▲ +19.23% | — |
Mar 12, 2026 29w ago | 8-K | $3.67 $2.85 | ▼ −22.34% | ▼ −21.36% | — |
Mar 12, 2026 29w ago | 8-K | $3.67 $2.85 | ▼ −22.34% | ▼ −21.36% | — |
US Market Status
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