Sleep Number Corp is trading 57.8% down at $0.16 as investors react to its ongoing Chapter 11 restructuring and newly secured debtor-in-possession (DIP) financing.
- The company obtained up to $260 million in DIP financing to fund operations during the bankruptcy process.
- Existing equity faces a high risk of significant dilution or a total wipeout, a common outcome in Chapter 11 cases that is driving the sharp sell-off.
- The decline stands in contrast to broader index futures, which are trading higher during the pre-market session.