MyPillow, the Minnesota-based bedding company known equally for poly-foam pillows and political controversy, is facing a major downturn in business.
The company lost nearly $100 million in annual sales and is now auctioning off equipment and subleasing factory spaces in the face of what CEO Mike Lindell labeled “a massive, massive cancellation” at the hands of retail chains and shopping networks.
The change in demand from big retailers means the company requires less packaging space, prompting MyPillow to sublease manufacturing space in its facility in Shakopee, MN.
Additionally, more than 850 pieces of equipment, ranging from trucks and forklifts to sewing machines and office chairs, were posted for auction at K-Bid.com earlier this week. In an interview with The Star Tribune, Lindell admits that this equipment is no longer needed as the company consolidates in the face of declining business. However, he fully intends to replace everything that is sold if the company bounces back. “If the box stores ever came back, we could have it if we needed it, but we don’t need that,” Lindell said. “It affected a lot of things when you lose that big of a chunk [of revenue].”
Walmart, Bed Bath & Beyond, and Slumberland Furniture, the stores Lidell is referring to, all declined to continue selling MyPillow products because of Lindell’s political activism and statements about the 2020 election. “It was a massive, massive cancellation,” Lindell insisted. “We lost $100 million from attacks by the box stores, the shopping networks, the shopping channels, all of them did cancel culture on us.”
Lindell, a longtime supporter of former President Donald J. Trump and vocal critic of the results of the 2020 election, insisted that Joe Biden only won through fraud and corruption. Though his defense of Trump led to an increase in sales to conservative customers, the MyPillow brand suffered greatly.
Beginning with Lindell being banned on Twitter in January 2021 and ending with the company being hit with a $1.3 billion lawsuit in federal court. Dominion Voting Systems, the company that provided the vote-tallying machines at the center of Lindell’s 2020 election theories, filed the suit in response to his alleged defamation. While the litigation is still ongoing and the equipment auction is not directly related to the case, Lindell says that “of course” it poses a concern.
Lindell also faces an additional $5 million penalty from his “Prove Mike Wrong” challenge. According to the Associated Press, Lindell insisted that digital manipulation swayed the election in Biden’s favor and offered $5 million to anyone who could debunk his claim. Software forensics expert Robert Zeidman submitted a report that challenged Lindell, causing an arbitration panel to rule against the MyPillow CEO. However, Lindell refused to make the payment and fully expects that this too will end up in court.
In light of these looming financial challenges, it’s uncertain whether MyPillow will be able to bounce back to its previous success. Lindell remains hopeful — even downplaying concerns about the lawsuits. “The $5 million is the lowest one,” he said. “I will be vindicated in every single one.”
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