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My Pillow remains technically operational in 2025, but the company faces severe financial distress amid mounting legal troubles and declining retail partnerships. CEO Mike Lindell recently told a federal judge he’s “in ruins” financially, highlighting the precarious state of the once-thriving pillow business.
1. The Current Business Status of My Pillow
My Pillow continues to sell products primarily through direct-to-consumer channels, but its retail presence has dramatically diminished. Major retailers, including Bed Bath & Beyond, Kohl’s, and Costco, have dropped the brand from their shelves. While the company hasn’t filed for bankruptcy, multiple indicators suggest severe financial instability.
According to court documents, Lindell has relocated production from a Shakopee warehouse (where the company was evicted for unpaid rent) to a facility in Chaska, Minnesota. However, this move hasn’t resolved the company’s financial woes, as evidenced by recent lawsuits from shipping partners.
2. Legal Battles Draining Company Resources
My Pillow has been the target of multiple lawsuits that have severely impacted its finances. Most notably, FedEx sued the company in March 2025 for approximately $8.8 million in unpaid shipping fees, as the New York Post reported. This follows a December 2024 judgment ordering My Pillow to pay DHL nearly $778,000 for similar unpaid bills.
These shipping disputes reveal a company struggling to meet basic operational expenses. FedEx reportedly stopped shipping My Pillow products in December 2024 due to nonpayment, severely limiting the company’s distribution capabilities.
3. The Impact of Lindell’s Political Activities
Lindell’s controversial political statements, particularly regarding the 2020 presidential election, have directly contributed to My Pillow’s decline. His promotion of election fraud claims led to defamation lawsuits from voting machine companies Dominion Voting Systems and Smartmatic, with potential damages in the billions.
According to SleepBloom, these controversies prompted many retailers to distance themselves from the brand, significantly reducing My Pillow’s market reach and revenue streams. Fox News also stopped airing My Pillow commercials, eliminating a primary advertising channel that had previously driven sales.
4. Financial Distress and Cash Flow Problems
In April 2025, Lindell told a federal judge that he was “in ruins” financially and unable to pay court-ordered sanctions. This admission came during proceedings related to one of his many legal battles, highlighting the severity of his personal and company financial situation.
The company’s inability to pay shipping partners indicates severe cash flow problems. With FedEx claiming $8.8 million in unpaid fees and DHL being awarded $778,000 for similar issues, My Pillow appears unable to maintain essential business relationships necessary for operations.
5. Diversification Attempts and New Product Lines
Despite financial challenges, My Pillow has attempted to diversify its product offerings beyond its signature pillows. The company has expanded into mattresses, bedding accessories, and other home goods to stabilize revenue.
However, the company’s legal and financial troubles have overshadowed these diversification efforts. Without major retail partners and with limited shipping capabilities, even new product lines face significant distribution challenges.
6. Consumer Perception and Brand Reputation
Lindell’s controversial statements have significantly damaged My Pillow’s brand reputation. Once known primarily for its pillows and late-night infomercials, the company is now inextricably linked to political controversy.
This association has polarized the customer base, with some consumers specifically avoiding the brand due to Lindell’s statements, while others support it for the same reason. This polarization has complicated the company’s marketing efforts and limited its appeal to mainstream consumers.
7. The Future Outlook for My Pillow
My Pillow’s future remains highly uncertain. The combination of legal expenses, potential penalties from ongoing lawsuits, lost retail partnerships, and shipping difficulties creates significant obstacles to recovery.
For the company to survive long-term, it would likely need to resolve its outstanding debts, rebuild relationships with shipping partners, and potentially distance its brand from the controversies surrounding its CEO. Without these changes, My Pillow may continue to operate at a diminished capacity or eventually cease operations entirely.
8. Lessons for Other Businesses
My Pillow’s situation offers important lessons about the potential business impact of a CEO’s public statements. When company leadership becomes embroiled in controversy, the effects can quickly cascade to affect operations, partnerships, and ultimately, financial viability.
For businesses of all sizes, maintaining focus on core operations and carefully managing public perception can be crucial to long-term success. My Pillow’s struggles demonstrate how quickly external factors can undermine even an established brand.
9. The Broader Economic Impact
My Pillow’s difficulties extend beyond the company itself. As a significant employer in Minnesota, its financial troubles affect workers and the local economy. Reports of layoffs and reduced operations suggest that the company’s workforce has diminished alongside its financial standing.
The economic ripple effects highlight how a company’s decline can impact communities, suppliers, and partners throughout its business ecosystem.
10. Is Recovery Possible for My Pillow?
While My Pillow continues to operate, a full recovery would require addressing multiple challenges simultaneously. The company would need to resolve its legal issues, rebuild retail partnerships, restore shipping capabilities, and potentially rebrand to distance itself from controversy.
Given the depth of its current difficulties and Lindell’s continued involvement in political controversies, a complete turnaround appears challenging. However, the company maintains a loyal customer base that may sustain at least some level of operations in the near term.
Have you ever purchased from a company that was experiencing public controversy? How did it affect your buying decision? Share your thoughts in the comments below.
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