Introduction: MyPillow’s Current Status at a Glance
You may be hearing questions about whether MyPillow is about to shut down. Let’s clear this up from the start: MyPillow is not currently out of business. The company is still operating—just on a much smaller (and more financially distressed) scale than even a few years ago.
Why is this story important for entrepreneurs and small-business owners? Because MyPillow’s challenges offer real-world lessons in risk, cash flow, and the impact of losing key partners. Understanding what happened may help you de-risk your own business decisions.
MyPillow’s Current Business Activities: Still Open, But Downsized
MyPillow, led by CEO Mike Lindell, continues to sell pillows and related products. However, if you look for MyPillow products in big-box stores like Walmart or Costco, you probably won’t find them. Their major focus now is direct-to-consumer sales—think selling from their own website, late-night TV spots, and through email marketing.
This shift came after big retailers and shopping channels dropped the brand. Today, MyPillow is operating as a leaner business, reaching customers directly and avoiding middlemen. For founders like you, this highlights how vital it is to build channels that you control, not fully relying on outside distributors.
A 2026 market review explains it simply: “Yes, MyPillow is still in business… there are no official announcements saying that MyPillow is going out of business.” If you check their website, you can still order pillows, sheets, and a handful of accessories. But the scale of the business has changed dramatically.
Operational Changes and Downsizing: How MyPillow Shrunk
Major operational changes started in 2021, when MyPillow began losing retailer partners after the 2020 U.S. election. Bed Bath & Beyond, Kohl’s, Costco, Walmart, QVC, and others pulled the plug on selling MyPillow products. This single event reportedly cost the company up to $100 million in lost revenue, according to Lindell.
With distribution shrinking, MyPillow had to react fast:
– The company auctioned off hundreds of pieces of equipment—from forklifts to assembly lines and cubicles.
– They subleased parts of their manufacturing spaces to reduce overhead.
– Inventory had to be liquidated at a loss, with Lindell stating bluntly, “we had no money left.”
If you’re running a small business, this is a sobering reminder. When your biggest customers leave, your fixed costs don’t decline overnight. Set aside time to model “what if” scenarios and prepare a cash reserve if you rely heavily on a handful of partners.
Facilities and Store Closures: Downsizing the Footprint
Shrinking retail operations forced MyPillow to make tough decisions about its facilities. In the past, they operated out of several warehouses and corporate buildings in Minnesota. In 2023 and 2024, reports emerged about:
– The company being evicted from at least one warehouse, with Lindell framing it as an unwanted (but manageable) situation.
– Moving company offices and attempting to sell the old Chaska headquarters due to financial pressure and unpaid rent.
– The last remaining mall-based retail store closing. Today, MyPillow does not operate any physical retail stores.
For entrepreneurs, this illustrates how fixed real estate can quickly become a liability. When in doubt, shorter leases and sublease options can provide flexibility when downsizing is unavoidable.
Statements and Outlook from CEO Mike Lindell
Throughout these changes, Mike Lindell has spoken openly about his financial struggles. At points, he admitted to being “in ruins” financially, and that his personal net worth has swung from around $60 million to being millions in debt.
However, Lindell also claims MyPillow is stable enough to survive as a direct-sales brand. Quotes from recent interviews show his optimism: “We’ve shifted our focus from retail and are coming out the other side.”
The mixed messaging is telling. As a business owner, recognize that optimism and transparency can help steady a team, but hard numbers and honest risk assessments carry the most weight when planning the future.
Legal and Reputational Challenges: More Than Sales Loss
MyPillow’s revenue drop was just one part of the picture. Legal and reputational issues have compounded the company’s financial stress:
– Retail partners started cutting ties with MyPillow shortly after Mike Lindell’s highly public involvement in post-2020 election conspiracy claims.
– MyPillow, along with Lindell personally, is involved in high-profile defamation lawsuits that carry major legal costs.
– Lindell has at times tried to crowdfund money for legal bills, signaling the strain.
These challenges can serve as a lesson in what reputational risk means for a business. You may need to consider how leadership decisions (even those outside core business activities) can impact partnerships, brand image, and access to capital. For newer founders, remember to separate business and personal actions—one can quickly affect the stability of the other.
Overall Outlook: Is MyPillow About to Close?
So, should you expect MyPillow to announce bankruptcy or a shutdown soon? Here’s what to know:
– There’s no public record or announcement that MyPillow is filing for bankruptcy, nor any formal closure press releases.
– As of mid-2026, MyPillow is technically still operational, but the company now operates on a much smaller scale than its peak. Sales rely on online channels. Most physical operations beyond the core warehouse are closed or subleased.
– Analysts and business watchers call MyPillow financially unstable and deeply downsized. Continuing lawsuits could drain resources further. The future likely depends on cutting costs, growing direct online sales, and possibly gaining new partners.
For business owners in similar situations, you may want to protect your company by reviewing:
- Revenue concentration: Relying on too few partners makes your business vulnerable to sudden changes.
- Legal risk readiness: It pays to consult with legal counsel and build up an emergency fund to handle potential legal costs.
- Asset flexibility: Renting or leasing (not buying) equipment and real estate may keep you nimble if you need to reduce size in a downturn.
If you want more practical lessons or similar real-business stories, you can check resources like Digit Business Mag, which regularly covers business transitions and tips from seasoned founders.
Action Steps: What This Means for Entrepreneurs
If MyPillow’s story makes you uncomfortable as a business owner, that’s understandable. You can learn risk management from both the wins and the struggles. Here are some steps you may consider:
– Track your customer base: Diversify early so one lost account can’t threaten your survival.
– Keep overhead flexible: Rent, lease, or sublease where possible—especially for property and high-ticket equipment.
– Separate personal and business finances: If possible, avoid linking your net worth directly to business liabilities.
– Prepare for legal and reputation risks: Build goodwill, keep communication open, and be cautious with public statements in sensitive times.
If you haven’t done so already, set aside time to compare your own sales channels, fixed costs, and emergency plans for tough market conditions.
Conclusion: Uncertainty, Survival, and Business Lessons
To wrap up, MyPillow is not out of business yet. The company has lost most of its big retail partners, shrunk its physical footprint, sold off surplus equipment, and now exists mainly as a direct-to-consumer, online-first business.
Heavy financial and legal pressures remain. MyPillow’s future is highly uncertain, and continued operations will require smart cost management and perhaps a little luck if legal verdicts push expenses higher.
If you’re an entrepreneur worried about “what if” scenarios, use this as prompt to review your own risk controls, cash flow plans, and customer diversity. The clear lesson from MyPillow’s experience: control what you can, stay lean, and prepare for unpredictability before it arrives.
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