Sleep Number Corp, a U.S. mattress retailer, has issued a Chapter 11 bankruptcy warning due to financial pressures. The company, founded in 1987, may be forced to significantly reduce operations or file for bankruptcy protection within the next year if conditions do not improve. The warning comes after several years of decreasing demand, store closures, and ongoing losses. While management has launched a turnaround strategy and is negotiating with lenders, these efforts may not be enough to stabilize its finances. The U.K. mattress manufacturing industry’s revenue declined 0.6% in 2025, and shipments in 2026 are expected to increase about 2%, slowing from stronger growth in 2024, followed by low single-digit growth in 2027. Despite these efforts, Sleep Number continues to face financial pressures and has reported losses over the past three years.