NEW CAANAN, CONN.— The largest stakeholder of Sleep Number Corp. has publicly written to its fellow shareholders, calling for changes to the company’s executive leadership and a reorganization of the board.
Over the past month, Stadium Capital Management has become more outspoken in its criticism of Sleep Number’s management.
Stadium Capital is requesting that Pat Hopf, a founding investor in Select Comfort, the company that preceded Sleep Number, be appointed executive chairman as part of its most recent proposal. According to today’s open letter, his first task would be to designate as a strategic advisor Gary Fazio, the former CEO of Mattress Firm and Simmons Bedding and Serta Simmons Bedding.
During his time at Mattress Firm, Fazio was described as “a mattress industry legend with an extraordinary record of massive value creation” by Stadium Capital in its letter. Stadium Capital stated, “Mr. Fazio is ready to jump right in and revitalize Sleep Number’s business in collaboration with Mr. Hopf.”
According to Stadium Capital, Hopf’s experience includes creating the company’s first business strategy in 1991, acting as Sleep Number’s chairman for 12 years, and twice acting as interim CEO.
The letter went on to say, “We are sure that Mr. Hopf’s extensive brand knowledge and enthusiasm, along with Mr. Fazio’s incredibly extensive industry contacts and experience, will position Sleep Number for the great success all of the company’s stakeholders deserve.” “Messrs. Fazio and Hopf won’t waste any time. We are eager to share with you their innovative turnaround plan.
