Canadian company inks deal with popular U.S. mattress brand after bankruptcy filing

Sleep Country Canada has entered an agreement with popular U.S. mattress company Sleep Number, which could bring new sleep products to the Canadian market.

Sleep Number Corporation filed for Chapter 11 bankruptcy protection this month, according to a press release from the company.

The popular mattress brand, known for its adjustable smart beds, announced it has entered into an agreement to combine with Sleep Country Canada “to create a leading North American mattress and bedding company.”

Linda Findley, president and chief executive officer of Sleep Number, said that despite efforts, the company’s capital structure remains unsustainable.

“Following a comprehensive review of our strategic options and a robust sale process, we are confident that moving forward with the Sleep Country Canada agreement and this court-supervised sale process will enable us to address our financial constraints,” Findley said.

The combined company would provide consumers across the United States and Canada a broader assortment of innovative sleep products and services in stores and online, the company said.

“We have long admired Sleep Number, its game-changing personalized sleep products and the talented team behind them,” Stewart Schaefer, president and chief executive officer of Sleep Country Canada, said. “Together, we see a tremendous opportunity to build on our complementary strengths and accelerate growth across the United States while introducing Sleep Number’s innovative sleep solutions to consumers in Canada and other markets.”

Through the process, Sleep Number fully expects to continue its day-to-day operations, including serving customers with its newest product, servicing warranties and delivering mattresses in homes.

Lead photo: Max Vakhtbovych