Travis Kelce-backed mattress brand files for bankruptcy but vows to keep customers safe

A Dramatic Fall from the Pinnacle of Sleep Innovation

Just months ago, Sleep Number was celebrating one of the biggest endorsements in its history. In January, the smart mattress maker unveiled a major partnership with Kansas City Chiefs star Travis Kelce, making the three-time Super Bowl champion both a brand ambassador and investor. Kelce joined a roster of NFL stars promoting the company's sleep technology, which promises to help users improve recovery, track sleep quality, and wake up feeling more refreshed.

Now, the company behind those high-tech beds, which can cost more than $5,000, is heading to bankruptcy court. Sleep Number has filed for Chapter 11 bankruptcy protection after struggling with mounting debt, rising costs, and weakening consumer demand. The Minnesota-based company entered the restructuring process with roughly $672 million in debt and is pursuing a $415 million sale to Canadian retailer Sleep Country Canada.

The filing marks a dramatic reversal for a company that spent years positioning itself as the future of sleep. Sleep Number has long tied its brand to elite athletic performance. Since 2018, the company has served as the NFL's Official Sleep and Wellness Partner, supplying smart beds and sleep-tracking technology to hundreds of professional football players.

Sleep Number claims as many as 83 percent of eligible active NFL players use its beds to monitor recovery and improve performance. Several teams have incorporated Sleep Number's biometric data into player wellness programs. The Los Angeles Rams, for example, have used sleep data to help personalize training schedules, recovery plans, and workloads.

The company built much of its marketing around that connection, recruiting a stable of star athletes that includes Kelce, Minnesota Vikings receiver Justin Jefferson, and Los Angeles Rams quarterback Matthew Stafford. For consumers, the message was simple: if these beds are good enough for some of the world's top athletes, they're good enough for your bedroom.

But even celebrity endorsements and NFL partnerships weren't enough to shield the company from growing financial pressures. Founded in Minnesota in 1987 by husband-and-wife entrepreneurs Robert and JoAnn Walker as Select Comfort, the company grew from a niche maker of adjustable air-chamber mattresses into one of America's best-known bedding brands.

In 2017, the company officially changed its name from Select Comfort to Sleep Number to reflect the brand's growing popularity. But now, Sleep Number says a combination of economic challenges ultimately pushed it into Chapter 11.

The company reported net sales of $319 million during the first quarter of 2026 but posted a $50 million loss during the same period. Court filings point to several factors behind the downturn, including inflation, weakening demand for big-ticket purchases, and rising operating expenses. The company also blamed tariffs and supply chain disruptions for increasing costs and creating uncertainty around its business.

Before filing, Sleep Number attempted multiple turnaround efforts. It refinanced debt, closed stores, streamlined its product lineup, and sought additional ways to improve cash flow. Those measures ultimately failed to solve its debt burden.

'While we have made significant progress improving our operations and strengthening our business, our capital structure remains unsustainable,' Sleep Number CEO Linda Findley said.

For consumers who already own a Sleep Number bed—or were considering buying one—the bankruptcy filing doesn't mean the company is shutting down. Sleep Number says customers can continue shopping in stores and online, receiving deliveries, and accessing customer service as normal throughout the restructuring process. The company also says warranties, sleep trials, and smart-bed functionality will remain in place.

The company currently operates 572 stores across the US and employs approximately 2,920 people.

The bankruptcy filing is closely tied to a proposed acquisition by Sleep Country Canada, one of Canada's largest mattress retailers. If approved, the deal would create one of North America's largest bedding companies, combining Sleep Number's nationwide US footprint with Sleep Country's network of more than 300 Canadian stores.

Sleep Country currently serves as what's known as a 'stalking horse bidder,' meaning competing buyers can still submit higher offers during the bankruptcy process. Sleep Number has indicated it may hold an auction in July if additional bids emerge.

One of the biggest unanswered questions involves Kelce's stake in the company. As part of his partnership agreement, the NFL star committed to purchasing Sleep Number shares and was eligible to receive additional stock over the course of the three-year deal. Court filings do not disclose how many shares Kelce purchased or how his sponsorship agreement will be treated during bankruptcy proceedings.