Sleep Number Corporation and its affiliated debtors filed for Chapter 11 bankruptcy protection on June 12, 2026, in the United States Bankruptcy Court for the Southern District of New York. The debtors, which include Select Comfort Retail Corporation, Select Comfort Canada Holding Inc., Select Comfort SC LLC, and Sleep Number Health Corporation, jointly administered under case number 26-11399, are now proceeding with a proposed joint Chapter 11 plan of liquidation.
On October 16, 2026, the bankruptcy court approved a disclosure statement related to the debtors’ proposed liquidation plan, finding it contained adequate information to solicit votes from creditors. The court also authorized related solicitation materials, established deadlines for voting and objections, and scheduled a confirmation hearing regarding the plan.
The confirmation hearing is set to begin on December 3, 2026, at 10:00 a.m. Eastern Time before Judge Kyu Y. Paek at the court’s New York courthouse. Participants may attend the hearing in person or remotely via Zoom, with prior registration required at least two business days before the hearing date. The court retains the option to adjourn or continue the hearing at its discretion or on the debtors’ notice.
Under the plan, creditors are divided into eight classes based on the nature of their claims or interests, including secured claims, priority claims, prepetition loans, unsecured claims, and intercompany interests. Holders of prepetition loan claims and general unsecured claims—Classes 3 and 4—are entitled to vote on the plan, while others are either deemed to accept or presumed to reject it. The voting record date was October 8, 2026, and ballots must be returned by November 20, 2026, at 4:00 p.m. Eastern Time.
Creditors who dispute the classification or amounts on their ballots may file a motion under Bankruptcy Rule 3018(a) to be temporarily allowed to vote, subject to court approval, with the same November 20 deadline. Objections to confirmation must also be filed and served by November 20 at noon and comply with relevant procedural rules. If no timely objections are filed, the court may confirm the plan without further input.
Upon confirmation, the plan will bind all holders of claims and equity interests in the debtors, including those who do not vote. The effective date of the plan will follow satisfaction or waiver of specified conditions, triggering key provisions such as releases, injunctions, exculpations, and discharges detailed in the plan. Holders who vote in favor of the plan and do not opt out will be deemed to have released claims against the debtors and certain related parties, while those who object or opt out may forgo certain benefits, although recoveries under the plan will remain unchanged.
Additional information, including the plan, disclosure statement, and court orders, is publicly available on the debtors’ case information website. Counsel for the debtors is Davis Polk & Wardwell LLP, based in New York.