Non-smooth systems can generate dynamics and bifurcations that are drastically different from their smooth counterparts. In this paper, we study such homoclinic bifurcations in a piecewise-smooth analytically tractable Lorenz-type system that was recently introduced by Belykh et al. [Chaos 29, 103108 (2019)]. Through a rigorous analysis, we demonstrate that the emergence of sliding motions leads to novel bifurcation scenarios in which bifurcations of unstable homoclinic orbits of a saddle can yield stable limit cycles. These bifurcations are in sharp contrast with their smooth analogs that can generate only unstable (saddle) dynamics. We construct a Poincaré return map that accounts for the presence of sliding motions, thereby rigorously characterizing sliding homoclinic bifurcations that destroy a chaotic Lorenz-type attractor. In particular, we derive an explicit scaling factor for period-doubling bifurcations associated with sliding multi-loop homoclinic orbits and the formation of a quasi-attractor. Our analytical results lay the foundation for the development of non-classical global bifurcation theory in non-smooth flow systems.