CEO of My Pillow, Mike Lindell, said My Pillow would soon break due to the money expenditure for defending the lawsuit by Dominion Voting.
My Pillow had to borrow 10 million dollars recently.
Though My Pillow sold products globally equivalent to nearly 322 million dollars in 2022, the company is breaking apart.
Let’s find out why My Pillow is going out of business instead of making massive sales.
What are the reasons for My Pillow going broke?
My Pillow is currently facing a lot of debt and will go bankrupt shortly. Sadly, the CEO of this company has also forecasted that the company’s business will soon dry up.
The sales of My Pillow have held perfectly fine and did not reduce but increased over the years. But factors other than sales have been a stroke of bad luck for this company.
In the 2020 United States presidential election, My Pillow actively supported Donald Trump or the Republican Party. Everything was fine until this pillow-manufacturing company started echoing false claims that Donald Trump said.
Donald Trump falsely accused Dominion Voting Systems Inc. that it rigged the election with its faulty machines. My Pillow echoed with Donald Trump that it was true though it was not.
Moreover, by intensifying the claim, My Pillow increased its pillow sales exponentially. In 2020, the annual sales were around 100 million dollars, which increased to 320 million dollars in 2023.
However, the strategy was not worth it. Due to the false claim, Dominion Voting Systems Inc. sued My Pillow for spreading misinformation about the company. And now, My Pillow has to pay 1.3 billion dollars as compensation.
As a result, My Pillow is going bankrupt. The annual sales of this pillow company are around 320 million dollars, whereas it has to pay more than a billion dollars. This lawsuit will sink this company single-handedly.
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Why is Costco not selling My Pillow?
Costco stopped selling My Pillow’s products in 2021. The retail company has said it would not tie in with some companies that promote conspiracy theories.
My Pillow had promoted the conspiracy that Donald Trump said about the voting company. As a result, not only does this pillow company have to bear the heavy burden of lawsuit money, but it also harms the company’s reputation.
Besides Costco, several companies, such as Walmart, also removed My Pillow’s products from its online website. As a result, My Pillow has lost its customers and has to sell its products only via offline stores.
Many companies have broken ties with this company. Shareholders are selling their shares. If this goes on, My Pillow is a goner.
Why did My Pillow promote Donald Trump’s controversial claim?
The former president of the United States, Donald Trump, was one of the endorsers of My Pillow’s products. Moreover, it is widely known that My Pillow was a diehard supporter of the Republican Party.
Therefore, when Donald Trump lost the election, My Pillow started to promote the controversy that the former president spoke of. Though it was proven that Trump’s claim had no base, My Pillow continued to stimulate the words.
However, was it necessary for My Pillow to echo Donald Trump’s controversial message?
In a word, NO. It was an unnecessary and unprofessional move from a company like My Pillow. My Pillow could have avoided the claim when it was proven wrong. But it continued to use it to boost its product sales.
Can My Pillow return to its business track?
My Pillow has already done the damage. The company is now on the brink of collapse. Now, the company cannot go back to its former track.
However, My Pillow can still make strategies to stop itself from liquidation. Though the company has promoted a controversial claim, it has done some good things as well, including
- Expanding its facilities in different states, creating job opportunities
- Donating 75 percent of the total cotton face masks to the healthcare division during the COVID-19 pandemic
- Manufacturing products with tags like Proudly American Made.
- https://www.yahoo.com/entertainment/mypillow-ceo-says-company-going-024330318.html – My Pillow going broke (Yahoo! Entertainment)
- https://www.bloomberg.com/news/articles/2021-02-22/mypillow-ceo-sought-to-boost-sales-with-election-lies-suit-says – Dominion Voting sued CEO of My Pillow (Bloomberg)
- https://ecommercedb.com/store/mypillow.com – My Pillow sales growth statistics (ecommerceDB)