Blue Clay Capital Issues Statement Regarding Sleep Number Corporation

Rhea-AI Summary

Blue Clay Capital CO III, a long-term shareholder of Sleep Number Corporation (NASDAQ: SNBR), has sent a letter to the Sleep Number Board urging them to immediately elect three Stadium Capital Board Representatives. Blue Clay Capital owns over 1% of Sleep Number and previously sought shareholder board representation in 2015. Since then, Sleep Number's stock has declined 46% compared to a 161% gain for Tempur-Pedic and a 125% gain for the S&P 500. Blue Clay Capital attributes this poor performance to management's poor decisions, ineffective strategic choices, and a lack of accountability in management and governance.

MINNEAPOLIS, Oct. 30, 2023 /PRNewswire/ -- Blue Clay Capital CO III, Long-Term Shareholders of Sleep Number Corporation (NASDAQ: SNBR), Sent Letter To Sleep Number Board Urging Them To Immediately Elect Three Stadium Capital Board Representatives.

• We are long-term shareholders who through our combined interests currently own over 1% of Sleep Number and sought shareholder board representation in 2015.  We were rebuffed by the board and management.
  
  
• Since we withdrew our proxy on May 15, 2015, Sleep Number has declined 46% vs. a 161% gain for Tempur-Pedic and 125% gain for the S&P 500
  
  
• This significant and unacceptable absolute and relative performance is due to extremely poor management decisions and execution, ineffective strategic decisions and a lack of accountability in management and governance.
  
  
• We share Stadium's concerns communicated in their press release about misallocation of capital and resources, ineffective strategy, untimely stock repurchases, excessive executive compensation and other issues that have led to weak operating margins and a poor capital structure, resulting in Sleep Number's long-term share price underperformance
  
  
• Shareholder representation is urgently needed on the board to solve the myriad of problems facing the company.  Shareholder board representation to improve strategy, expenses, and compensation plan design would unlock significant shareholder value.
  
  
• We urge Sleep Number to immediately elect three Stadium Capital nominees to the board.
  
  
• We are concerned with the board's unacceptable response to Stadium.  Any further delay addressing the serious concerns raised by shareholders will only continue the long-term pain shareholders have endured.   Immediate action is needed. 
  
  
• We have communicated our detailed concerns to the board in a letter that can be accessed here (https://docsend.com/view/kij2abv5aw9xz3iq) and await an opportunity to directly confer with the board.

Investors contact:

Okapi Partners LLC
Bruce Goldfarb / Chuck Garske
(212) 297-0720
Info@okapipartners.com

View original content:https://www.prnewswire.com/news-releases/blue-clay-capital-issues-statement-regarding-sleep-number-corporation-301970907.html

SOURCE Blue Clay Capital

FAQ

Who sent the letter to Sleep Number Board?

Blue Clay Capital CO III, a long-term shareholder of Sleep Number Corporation (NASDAQ: SNBR), sent the letter.

What is the purpose of the letter?

The letter urges the Sleep Number Board to immediately elect three Stadium Capital Board Representatives.

What percentage of Sleep Number does Blue Clay Capital own?

Blue Clay Capital currently owns over 1% of Sleep Number.

When did Blue Clay Capital previously seek shareholder board representation?

Blue Clay Capital sought shareholder board representation in 2015.

How has Sleep Number's stock performed compared to Tempur-Pedic and the S&P 500?

Since 2015, Sleep Number's stock has declined 46% while Tempur-Pedic has gained 161% and the S&P 500 has gained 125%.

What does Blue Clay Capital attribute the poor performance to?

Blue Clay Capital attributes the poor performance to management's poor decisions, ineffective strategic choices, and a lack of accountability in management and governance.