Purple Innovation Agrees to Changes Proposed by Coliseum Capital Management

DEF 14 Inc. April 18, 2023

Purple Innovation, a leading provider of comfort products and sleep technology, has recently announced a cooperative framework with activist investor Coliseum Capital Management. The agreement comes after Coliseum Capital Management acquired a 10.9% stake in Purple Innovation and pushed for changes in the company's management and operations.

As part of the cooperative framework, Purple Innovation has agreed to appoint two new independent directors to its board, both of whom will be nominated by Coliseum Capital Management. These new directors will work with the existing board members to help guide the company's strategic direction and improve its financial performance.

In addition to the board appointments, Purple Innovation has also agreed to implement certain operational and financial changes that were proposed by Coliseum Capital Management. These changes include improving the company's supply chain management, optimizing its marketing and advertising spend, and exploring potential strategic partnerships and acquisitions.

Commenting on the agreement, Coliseum Capital Management's Managing Partner Christopher Shackelton said, "We are pleased to have reached a cooperative framework with Purple Innovation that we believe will enhance shareholder value. We look forward to working collaboratively with the company's management team and board of directors to help drive long-term growth and profitability."

Purple Innovation's CEO, Joe Megibow, added, "We welcome the constructive input and support of Coliseum Capital Management and are committed to working together to create value for all of our shareholders. We believe that the changes we are implementing as part of this agreement will position us for success in the years ahead."

The news of the cooperative framework has been well received by investors, with Purple Innovation's stock price rising by 5% following the announcement. The agreement marks a significant step forward for the company as it seeks to enhance its financial performance and maintain its position as a leader in the comfort products and sleep technology industry.