MyPillow Reshuffles Operations and Auctions Equipment Following Retailer Backlash
In response to widespread backlash from major retailers, MyPillow has made significant changes to its operations, including the auctioning of surplus equipment and the subleasing of manufacturing space.
Founder and CEO Mike Lindell recently listed over 850 surplus equipment items on the popular online auction site K-Bid. Among the items up for auction are sewing machines, industrial fabric spreaders, forklifts, as well as office furniture like desks and chairs.
Lindell explained that MyPillow’s revenue has suffered, leading the Chaska-based manufacturer to consolidate its operations and render these surplus items unnecessary.
The decision by retailers such as Walmart, Bed Bath & Beyond, and Slumberland Furniture to discontinue the sale of MyPillow products came in response to Lindell’s persistent and baseless claims that the 2020 presidential election was stolen from former President Donald Trump.
Lindell acknowledged the significant impact of this retail boycott, stating, “It was a massive, massive cancellation. We lost $100 million from attacks by the box stores, the shopping networks, the shopping channels – all of them engaged in cancel culture against us.”
It’s important to note that the ongoing auction of equipment is unrelated to the $1.3 billion defamation lawsuit faced by both Lindell and MyPillow, which is currently being litigated in federal court. Dominion Voting Systems, a voting machine and election software company, alleges that Lindell defamed them as part of his campaign to delegitimize the 2020 election.
Despite the mounting controversy surrounding his claims, Lindell remains steadfast in his assertions that there were irregularities in the election. He even plans to host an event in the coming month to present his idea for a new election system.
However, these controversies have necessitated significant shifts in MyPillow’s business strategy. After being dropped by shopping networks, the company has transitioned to direct sales, intensifying its efforts through new television commercials, email marketing, radio spots, and direct mail campaigns.
Additionally, MyPillow has started subleasing a portion of its manufacturing space in Shakopee. This move is prompted by the need for different packaging requirements for direct sales compared to working with larger retailers.
Lindell clarified, “We kind of needed a building and a half, but now with these moves we’re making, we can get it down to our one building. If the box stores ever came back, we could have it if we needed it, but we don’t need that. It affected a lot of things when you lose that big of a chunk [of revenue].”
Regarding the auctioned equipment, Lindell mentioned that he would need to replace those items if the retailers were to resume selling MyPillow products.
During the period when MyPillow was dropped by retailers, Lindell admitted that there were several months when some workers had very little to do. In response, he reassigned employees to work for MyStore, an online marketplace he established, while others joined his addiction resource organization, the Lindell Recovery Network.
Lindell clarified that most hardware stores, such as Menards, Fleet Farm, and Ace, continue to carry MyPillow products. As of now, he hasn’t had to lay off any employees, although some may have left the company after being reassigned to different roles.
When asked about the pending lawsuits and their impact on his business, Lindell acknowledged, “Of course it has.” In April, an arbitration panel ordered Lindell to pay $5 million to a software forensics expert who disproved several of his election claims in a “Prove Mike Wrong” contest. Lindell has contested this ruling, describing it as “frivolous.”
He confidently added, “The $5 million is the lowest one. I will be vindicated in every single one.”
Information for this briefing was found via Star Tribune and the sources mentioned. The author has no securities or affiliations related to this organization. Views expressed within are solely that of the author. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
