Blab Business
Sleep Country Canada Completes $702 Million Acquisition of Sleep Number, Expanding into U.S. Market
Sleep Country Canada Inc. announced on July 31 that it has closed its acquisition of substantially all assets of Minneapolis‑based Sleep Number Corporation, a move that propels the Toronto‑based retailer into the position of the world’s second‑largest sleep retailer.
The deal, valued at roughly US$702 million, was finalized after a court‑supervised sale process that began when Sleep Number filed for Chapter 11 bankruptcy protection on June 12, 2026. In a filing with the U.S. Bankruptcy Court, Sleep Number disclosed that it had entered into an agreement to combine with Sleep Country and that it would continue to serve customers online and in‑store during the sale.
Sleep Country’s purchase of Sleep Number’s assets received court approval on July 20 and was expected to close by July 31, the date on which the company confirmed the completion. The acquisition gives Sleep Country a presence in the United States, where Sleep Number operated more than 570 stores across the country before its bankruptcy filing.
Sleep Country Canada, a Toronto‑based retailer that has long been the leading specialty mattress retailer in Canada, operates over 250 stores in provinces such as British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Prince Edward Island and Nova Scotia. The company’s expansion into the U.S. market represents a significant geographic growth for a business that has traditionally focused on Canadian consumers.
Founded in Minneapolis, Sleep Number has been known for its adjustable smart beds and related bedding accessories. The company’s bankruptcy filing cited a combination of high debt levels, inflationary pressures, tariff costs and supply‑chain disruptions as factors that led to its financial distress. Prior to filing, Sleep Number had a debt load of approximately US$672 million.
The acquisition is expected to create a combined entity with a broad portfolio of mattresses, foundations and bedding products. Sleep Country’s management has indicated that it will continue to operate the Sleep Number brand and store locations under the new ownership structure.
From a market perspective, the deal positions Sleep Country as a major competitor to other large U.S. mattress retailers such as Mattress Firm and Amazon’s private‑label brands. The combined company will have a national footprint that includes more than 570 U.S. stores and over 250 Canadian locations.
Regulatory approval for the transaction was obtained through the U.S. Bankruptcy Court, and no antitrust review has been reported. The deal does not involve the transfer of any outstanding debt from Sleep Number to Sleep Country; the purchase price covers the assets and ongoing operations.
Sleep Country’s board of directors confirmed that the acquisition will be financed through a combination of cash on hand and a new financing arrangement that was secured during the bankruptcy sale process. The company has not disclosed the terms of the new financing.
The completion of the acquisition comes at a time when the mattress industry is experiencing consolidation. Several regional retailers have merged or been acquired in recent years as they seek to expand product lines and geographic reach.
Sleep Country Canada’s stock, listed on the Toronto Stock Exchange under the symbol ZZZ, has not yet reacted to the announcement. The company’s next earnings report is scheduled for the first quarter of 2027, at which time it will provide further details on the integration of Sleep Number’s operations.
The acquisition also raises questions about how the combined entity will manage its supply chain, given Sleep Number’s manufacturing facilities in Minnesota, South Carolina and Utah. Sleep Country has indicated that it will maintain existing manufacturing relationships while exploring opportunities for cost efficiencies.
In summary, Sleep Country Canada has completed a US$702 million purchase of Sleep Number’s assets, thereby expanding its footprint into the United States and becoming the world’s second‑largest sleep retailer. The deal was finalized after a court‑supervised sale process that began following Sleep Number’s Chapter 11 filing. The combined company will operate a network of more than 820 stores across North America.
The next key milestone will be the company’s first quarterly earnings release under the new structure, which is expected to provide insight into the financial impact of the acquisition and the progress of integration efforts.
The deal, valued at roughly US$702 million, was finalized after a court‑supervised sale process that began when Sleep Number filed for Chapter 11 bankruptcy protection on June 12, 2026. In a filing with the U.S. Bankruptcy Court, Sleep Number disclosed that it had entered into an agreement to combine with Sleep Country and that it would continue to serve customers online and in‑store during the sale.
Sleep Country’s purchase of Sleep Number’s assets received court approval on July 20 and was expected to close by July 31, the date on which the company confirmed the completion. The acquisition gives Sleep Country a presence in the United States, where Sleep Number operated more than 570 stores across the country before its bankruptcy filing.
Sleep Country Canada, a Toronto‑based retailer that has long been the leading specialty mattress retailer in Canada, operates over 250 stores in provinces such as British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Prince Edward Island and Nova Scotia. The company’s expansion into the U.S. market represents a significant geographic growth for a business that has traditionally focused on Canadian consumers.
Founded in Minneapolis, Sleep Number has been known for its adjustable smart beds and related bedding accessories. The company’s bankruptcy filing cited a combination of high debt levels, inflationary pressures, tariff costs and supply‑chain disruptions as factors that led to its financial distress. Prior to filing, Sleep Number had a debt load of approximately US$672 million.
The acquisition is expected to create a combined entity with a broad portfolio of mattresses, foundations and bedding products. Sleep Country’s management has indicated that it will continue to operate the Sleep Number brand and store locations under the new ownership structure.
From a market perspective, the deal positions Sleep Country as a major competitor to other large U.S. mattress retailers such as Mattress Firm and Amazon’s private‑label brands. The combined company will have a national footprint that includes more than 570 U.S. stores and over 250 Canadian locations.
Regulatory approval for the transaction was obtained through the U.S. Bankruptcy Court, and no antitrust review has been reported. The deal does not involve the transfer of any outstanding debt from Sleep Number to Sleep Country; the purchase price covers the assets and ongoing operations.
Sleep Country’s board of directors confirmed that the acquisition will be financed through a combination of cash on hand and a new financing arrangement that was secured during the bankruptcy sale process. The company has not disclosed the terms of the new financing.
The completion of the acquisition comes at a time when the mattress industry is experiencing consolidation. Several regional retailers have merged or been acquired in recent years as they seek to expand product lines and geographic reach.
Sleep Country Canada’s stock, listed on the Toronto Stock Exchange under the symbol ZZZ, has not yet reacted to the announcement. The company’s next earnings report is scheduled for the first quarter of 2027, at which time it will provide further details on the integration of Sleep Number’s operations.
The acquisition also raises questions about how the combined entity will manage its supply chain, given Sleep Number’s manufacturing facilities in Minnesota, South Carolina and Utah. Sleep Country has indicated that it will maintain existing manufacturing relationships while exploring opportunities for cost efficiencies.
In summary, Sleep Country Canada has completed a US$702 million purchase of Sleep Number’s assets, thereby expanding its footprint into the United States and becoming the world’s second‑largest sleep retailer. The deal was finalized after a court‑supervised sale process that began following Sleep Number’s Chapter 11 filing. The combined company will operate a network of more than 820 stores across North America.
The next key milestone will be the company’s first quarterly earnings release under the new structure, which is expected to provide insight into the financial impact of the acquisition and the progress of integration efforts.
