Sleep Country announced plans to acquire Sleep Number for $702 million, including approximately $530 million in cash. The U.S. Bankruptcy Court in the Southern District of New York approved the transaction on Monday, with closure anticipated within approximately 10 days based on court filings.
Sleep Number initiated bankruptcy proceedings the previous month with a pre-negotiated agreement already in place with Sleep Country. The Canadian retailer’s initial proposal valued the acquisition at approximately $415 million before the price was raised to the final figure.
The path to bankruptcy occurred despite a high-profile investment earlier in the year. Kansas City Chiefs player Travis Kelce, identified as Taylor Swift’s spouse, took a stake in Sleep Number in January, becoming one of the company’s major shareholders with less than 5% ownership. Kelce acquired shares through open market purchases and received compensatory restricted stock units, and the company announced a three-year advertising partnership featuring him. However, this investment failed to prevent the mattress retailer’s financial deterioration, as sales continued declining throughout the year while losses expanded and market share eroded.
Following the acquisition, the combined entity will operate more than 570 Sleep Number locations in the United States alongside Sleep Country’s portfolio of over 300 stores operating under multiple banners including Sleep Country Canada, Dormez-vous, Endy, Silk & Snow, Hush, Casper Canada, and Simba. The merger will establish the combined company as the second-largest sleep retailer globally, behind Somnigroup International. Sleep Country’s CEO highlighted Sleep Number’s technological assets, noting the U.S. company maintains more than 1,000 patents and pending patents.
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