Sleep Number Corporation

Representation of the creditors’ committee in the chapter 11 cases of Sleep Number Corporation and its debtor affiliates in the Southern District of New York. Founded in 1987, Sleep Number is a major mattress brand best known for its proprietary smart beds and adjustable air mattresses. As of the bankruptcy filing, the company operated more than 570 Sleep Number stores with locations in all of the 50 states and employed more than 2,900 workers. Sleep Number filed the chapter 11 cases to initiate a sale process, in which the committee, with the firm’s counsel, vigorously participated. The successful result was the court approval in July 2026 of a sale transaction. After a robust sale/auction process, the total adjusted cash consideration increased from $415 million to more than $700 million (cash and assumed liabilities)—nearly a 70% increase from the stalking horse bid. The going-concern sale is expected to include rehiring the vast majority of the debtors’ employees and assuming substantially all of the debtors’ contracts and leases. Assisted by the firm, the committee continues to ensure that the recoveries for unsecured creditors are maximized in these complex cases.