Bedding company Sleep Number has been sold to Canada’s Sleep Country as part of its voluntary Chapter 11 sale process.

Founded in 1987 and based in Minneapolis, Minnesota, Sleep Number entered Chapter 11 last month after struggling with consistent sales decline and financial strain. 

As part of the process, Sleep Country was the stalking horse bidder. The company is Canada’s leading sleep retailer with a portfolio of retail banners including Sleep Country Canada, Dormez-vous, Endy, Silk & Snow, Hush, Casper Canada, and Simba. 

The acquisition enables Sleep Country to expand into the US market and positions it as the second-largest sleep retailer worldwide. The company now has more than 800 locations thanks to the addition of approximately 570 Sleep Number stores.

Stewart Schaefer, president and CEO of Sleep Country Canada, described the acquisition as a “game-changing” deal for the company.

“Sleep Number has built an exceptional brand, driven by amazing people, meaningful comfort and 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,” Schaefer said.

Leaders from both companies have been working together to ensure continuity for customers, support for employees and a thoughtful approach to integrate the two businesses. Customers can continue to expect the same standards of service, support and expertise from the brands they know.

The companies will provide additional information regarding integration activities when updates become available.