Court OKs Sleep Number sale — deal creates second largest global sleep retailer
Sleep Number Corp. has won bankruptcy court approval for the sale of substantially all its assets and ongoing business operations to Sleep Country Canada.
The deal, which comes five weeks after the mattress and bedding retailer filed for bankrutpcy, followed a competitive, court-supervised sale process. Expected to close by July 31, the transaction positions Sleep Country and its brands second largest sleep retailer in the world.
Sleep Number, which has more than 570 locations nationwide, has been challenged with slumping sales amid a competitive mattress market. In March, the company launched a turnaround strategy that includes the largest product redesign in nearly a decade and its first integrated marketing campaign in years. It also has focused on cutting costs.
“We started this process with the goals of addressing our financial constraints and positioning our business for a stronger future,” said Sleep Number CEO Lisa Findley. “Combining with Sleep Country Canada enables us to achieve these goals, and today’s Court approval paves the way for us to complete our transaction. Our future together is bright.”
Sleep Country Canada houses the following retail banners: Sleep Country Canada, Dormez-vous, Endy, Silk & Snow, Hush, Casper Canada and Simba. The company 307 corporate-owned stores and 18 warehouses across Canada.
This is a game-changing acquisition," said Stewart Schaefer, president and CEP of Sleep Country Canada. "Sleep Number has built an exceptional brand, driven by amazing people, meaningful comfort & innovation and an unwavering commitment to improving customers' lives through better quality of sleep. We look forward to welcoming the Sleep Number team, and working alongside them as we bring these two organizations together to deliver better sleep to all of our customers."
Throughout the transaction process, leaders from both companies worked closely together to ensure continuity for customers, support for employees and a thoughtful approach to bringing the two companies together. That collaborative spirit will continue as integration planning moves forward.
"Our priorities remain clear," Schaefer continued. "We will continue serving customers with the same commitment to quality, expertise and care that they have always expected from our brands. We will also take the time to listen, learn and build relationships across our teams as we shape the future together."
