MyPillow is auctioning off equipment after losing dealers

MyPillow is auctioning off hundreds of pieces of equipment and subleasing production space after several shopping networks and large retailers took the company’s products off the shelves.

The Chaska-based manufacturer recently listed more than 850 “surplus equipment” items on the online auction site K-Bid. Sewing machines, industrial fabric spreaders, forklifts and even desks and chairs are up for auction.

Founder and CEO Mike Lindell said MyPillow has experienced a loss in revenue and the items are no longer needed as the company consolidates its operations.

Major retailers such as Walmart, Bed Bath & Beyond and Slumberland Furniture all said they will no longer sell MyPillow products as Lindell continues to falsely claim the 2020 election was stolen from former President Donald Trump.

“It was a massive, massive cancellation,”[ads1]; Lindell said in a phone interview Monday. “We lost $100 million from the onslaught of the box stores, the shopping networks, the shopping channels, everyone interrupted the culture on us.”

The auction does not appear to be related to the $1.3 billion defamation lawsuit against both Lindell and MyPillow, which is pending in federal court.

Dominion Voting Systems claims Lindell defamed the company as part of his campaign to paint the 2020 presidential election as “rigged.” Dominion makes voting machines and election software.

Lindell has not backed down from his claims that there was something wrong with the 2020 election and its results. He said he plans to host an event next month outlining a new way of holding elections.

But the ongoing controversy over his claims has forced major changes in his business. After some shopping networks dropped his products, the company has switched to direct sales, filmed new TV commercials and tried to increase its presence through e-mail marketing, radio spots and direct mail.

Lindell said the company is subleasing some of its manufacturing space in Shakopee because the packaging for direct sales is different than what they needed when working with large retailers.

“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,” he said.

“If the box stores ever came back, we could have it if we needed it, but we don’t need it,” he added. “It affected a lot of things when you lose such a big part [of revenue].”

The same applies to the equipment he auctions off. He said he will have to replace what he auctions off if the dealers “ever come back.”

It was several months after MyPillow was dropped by retailers when there was “hardly anything” for some workers to do, Lindell said. He moved employees to work for MyStore, an online marketplace he created. Others transferred to his addiction resource organization, the Lindell Recovery Network.

Most hardware stores, such as Menards, Fleet Farm and Ace, continue to carry MyPillow products, he said. He hasn’t had to lay off any employees yet, but some may have left the company after being assigned new roles, Lindell said.

Asked if the pending lawsuits have contributed to the challenges in his business, Lindell said “of course it has.”

In April, an arbitration panel ruled that Lindell must pay $5 million to a forensic software expert who disproved several of his election claims in a “Prove Mike Wrong” contest. Lindell has challenged that ruling, calling it “frivolous”.

“The five million dollars is the lowest,” he said. “I will be justified in every one.”

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