Business
Purple Innovation Responds to Coliseum Capital’s Campaign to Replace a Majority of the Board
Believes Coliseum’s Effort to Take Control of the Company Without Paying a Suitable Premium is Not in the Best Interests of All Purple Shareholders LEHI,
About this update from Purple Innovation, Inc.
[{"type":"text","content":"\nBelieves Coliseum’s Effort to Take Control of the Company Without Paying a Suitable Premium is Not in the Best Interests of All Purple Shareholders\n\n LEHI, Utah--(BUSINESS WIRE)--\nPurple Innovation, Inc. (NASDAQ: PRPL) (the “Company” or “Purple”), a comfort innovation company known for creating the \"World's First No Pressure Mattress,\" today responded to the announcement by Coliseum Capital Management, LLC (“Coliseum”), a 45% shareholder, of its intention to nominate five directors for election to Purple’s Board of Directors (the “Board”) at the Company’s 2023 annual meeting (the “Annual Meeting”).\n\nThe Special Committee of the Board of Directors made the following statement:\n\nWe are extremely disappointed that Coliseum has launched a proxy fight seeking to replace a majority of Purple’s Board, which currently comprises seven members.\n\nColiseum’s Managing Partner Adam Gray has served on Purple’s Board of Directors since the time the Company went public in 2018. He has been the Chairman of the Board’s Nomination & Governance Committee (N&G Committee) since its formation. During this time, Mr. Gray has been a fully engaged director, regularly contributing to Board composition and management succession planning, developing long-term growth strategies, and determining the appropriate capital structure to support the Company’s promising future.\n\nAt no time did Mr. Gray express his discontent with the way the business is being managed or the Company’s strategic direction. He appears content with management, and he has been the director most responsible for the Board’s composition, given his role as Chairman of the N&G Committee. Mr. Gray’s posture only changed in January when the Company rejected Coliseum Capital’s undervalued buyout proposal of $4.35 per share. Notably, Purple’s stock has closed over that price for the past 75 days. Only in January, after the Company turned down Coliseum’s opportunistic proposal, has Coliseum leveled criticisms and initiated the process to replace the majority of the Board with individuals of Coliseum’s choosing.\n\nMr. Gray and Coliseum have chosen to ignore the ongoing Board refreshment process that Mr. Gray, as Chair of the Board’s N&G Committee, was responsible for managing. Inexplicably, none of Coliseum’s new nominees were previously submitted by Mr. Gray for consideration to the...