Mattress Seller Sleep Number Seeks Rescue Loan After Stock Slump

Sleep Number Corp., which has seen its share price collapse more than 80% over the past two months, is seeking rescue financing to stave off other options including a potential bankruptcy, according to people familiar with the situation.

The mattress seller’s banker, Guggenheim Partners, has been reaching out to investors to gauge interest in providing fresh capital, including a priming loan of about $50 million, said the people, who asked not to be identified discussing a private matter. Such loans — often used to help a troubled borrower restructure its debt or plug a liquidity shortfall — rank new financing higher than existing obligations.