On Friday, June 12, 2026, Sleep Number filed for bankruptcy in the Southern District of New York, docket #26-11399. According to Reuters, the company plans to sell its assets under a $415 million buyout offer from Canadian bedding company Sleep Country Canada Inc. Sleep Number has 572 retail stores in the U.S.
Interestingly, Reuters reports the company recently entered into a sponsorship agreement with National Football League star Travis Kelce, fiancé of Taylor Swift, which made Mr. Kelce a top shareholder with a 5% stake in the company. It was not clear how the sponsorship agreement would be treated in the bankruptcy.
The company enters bankruptcy with $672 million in debt, blaming tariffs and inflation for the filing. An auction is scheduled for July 13, but the company is open to higher and better offers.
For shopping center owners and landlords, this filing raises immediate and practical concerns: rent payments, lease assumption or rejection, the auction, and the long-term viability of the space.
Why This Matters to Shopping Center Owners
Retail bankruptcies like Sleep Number’s illustrate how fast a case can proceed for landlords. Here the auction is currently scheduled for July 13, less than a month away.
Early, informed action can significantly affect a landlord’s recovery and leverage.
Sleep Number joins a growing list of retailers seeking bankruptcy protection this year, as companies navigate restructuring to optimize value for stakeholders.
