Blue Clay Capital Issues Statement Regarding Sleep Number Corporation
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.