You’ve probably seen the headlines. Or maybe you just noticed that the ubiquitous commercials featuring Mike Lindell—the guy who turned a foam-scrap pillow into a household name—aren’t quite as inescapable as they used to be. It makes you wonder. People are genuinely asking: is MyPillow going out of business, or is this just another chapter in one of the most polarizing corporate stories of the decade?
The answer isn't a simple yes or no. It's messy.
Honestly, if you look at the balance sheets and the court filings, the company is definitely in the fight of its life. But MyPillow isn't shuttered yet. They are still taking orders. The website is still live. However, the version of the company that existed five years ago—the one with prime retail shelf space and a massive advertising budget—has largely evaporated.
The Empty Shelves and the Retail Divorce
For years, you could walk into a Bed Bath & Beyond, Walmart, or Kohl's and find a wall of blue boxes. That’s over. One of the biggest blows to the company’s stability wasn't a lack of demand from customers, but a massive retreat from retail partners.
Retailers hate controversy. It’s bad for the bottom line. Following Lindell’s vocal and persistent claims regarding the 2020 election, major chains started cutting ties. Bed Bath & Beyond (which has its own bankruptcy issues now) and Kohl’s were among the first to pull the plug. Wayfair and JCPenney followed. Lindell has frequently claimed these moves were "cancel culture" in action, but from a business perspective, it was a risk-management decision by corporate buyers.
Losing retail means losing "passive" discovery. When you aren't in the aisle, you have to work ten times harder to find your customer. This forced MyPillow to pivot back to its roots: direct-to-consumer (DTC) sales. But that costs a lot of money in digital ads and airtime.
The Auction of the Century (or at least the Warehouse)
If you want to know if a company is hurting, look at their equipment. In mid-2023, MyPillow made headlines not for a new product, but for an online auction. They weren't just selling off extra pillows; they were selling the literal guts of their manufacturing operation.
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We’re talking about industrial sewing machines, forklifts, conveyors, and even office cubicles. More than 800 items were put on the block through K-Bid Online Auctions.
Lindell told reporters at the time that this was just a "sublease" move because the company was moving toward a more streamlined "direct-feed" model. He framed it as efficiency. Critics framed it as a fire sale. To be fair, when a manufacturing company sells off its sewing machines and "pallet racking," it usually suggests a massive scale-back in production volume. You don't sell the tools of your trade if you're planning to double production next month.
Legal Fees are Eating the Pillow
The biggest threat to the question of is MyPillow going out of business isn't actually the pillows. It’s the lawyers.
The company is currently staring down massive defamation lawsuits from Dominion Voting Systems and Smartmatic. We are talking about billion-dollar figures. Even for a company that once boasted $300 million in annual revenue, a $1.3 billion lawsuit is an existential threat. It's a "bet the company" scenario.
In late 2023, Lindell’s own lawyers—the firm Parker Daniels Kibort LLC—asked a judge to let them stop representing him and MyPillow. Why? Because they hadn't been paid in months. They claimed the company owed them millions of dollars. When your own defense team wants to walk away because the coffers are empty, the "going out of business" rumors start to feel a lot more like a "going out of business" reality.
Credit Lines and the American Express Factor
Cash flow is the oxygen of any business. In early 2024, Lindell revealed that American Express had slashed MyPillow’s credit line. He claimed it went from $1 million to $100,000 almost overnight.
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Imagine trying to run a massive manufacturing and shipping operation with 90% of your credit cut off. It’s like trying to run a marathon while someone is pinching your straw. This credit squeeze makes it incredibly difficult to buy raw materials—the foam, the fabric, the packaging—needed to fulfill new orders.
Is the Product Still Good?
Despite the noise, there’s still a core group of customers who swear by the product. That’s the irony. The "interlocking fill" that Lindell patented actually has a loyal following. But the brand has become so synonymous with political activism that the product itself has become secondary.
In the world of business, once a brand becomes "radioactive" to 50% of the population, your growth ceiling drops through the floor. You aren't just selling a pillow anymore; you’re selling a statement. That might work for a niche brand, but MyPillow was built for the mass market. The mass market is currently avoiding the blue box.
Evidence of a Slow Fade
Instead of a sudden "Going Out of Business" sign on the door, what we are seeing is a "slow fade."
- Evictions: In March 2024, a judge in Minnesota ordered MyPillow to vacate a warehouse in Shakopee after the company fell behind on rent by over $200,000.
- Tax Liens: The IRS and state authorities don't wait. There have been various reports of tax liens being filed against company property.
- Ad Spend: The company has shifted heavily to "alternative" media platforms and radio spots where the advertising rates are lower and the audience is more ideologically aligned.
What Happens if You Order a Pillow Today?
If you go to the website right now, you can still buy a pillow. They are still shipping. They have introduced new products like "MySlippers" and kitchen towels to diversify. They are trying to innovate their way out of a corner.
However, the "Expert" take here is that the company is currently a "Zombie Company." This is a term used in finance for a business that generates enough cash to continue operating and perhaps pay interest on its debt, but not enough to actually pay off the debt or grow. They are surviving day-to-day, waiting for a legal miracle or a massive surge in "patriotic" buying.
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Steps You Should Take as a Consumer
If you’re a fan of the product or just someone watching the saga, here is how you should handle the current MyPillow situation:
1. Be Cautious with Gift Cards
If you have a MyPillow gift card, use it immediately. In any bankruptcy or closure scenario, gift card holders are usually the last people to get paid (if at all). If the company files for Chapter 7 or 11, those cards often become worthless overnight.
2. Expect Shipping Delays
With reduced staff and credit lines, the supply chain is likely strained. Don't expect "Amazon Prime" speeds. If you need a pillow for a guest arriving this weekend, buy something else locally.
3. Monitor Your Credit Card Statements
When companies are in financial distress, their backend systems sometimes suffer. If you do order, keep a close eye on your statement to ensure you aren't double-charged or that a "subscription" hasn't been added to your cart without your knowledge—tactics sometimes used by struggling DTC brands to fluff their numbers.
4. Look for Liquidators
If the company does eventually fold, you’ll see the remaining stock hit liquidators like Tuesday Morning or Ollie's Bargain Outlet. You might get that $50 pillow for $7.
5. Consider the Warranty
MyPillow famously offers a 10-year warranty. Realistically, you should view this as a "life of the company" warranty. If the company doesn't exist in 2027, that 10-year guarantee is just a piece of paper. Buy the pillow because you like it now, not because you expect a replacement in eight years.
The survival of MyPillow depends almost entirely on the outcome of its legal battles. If the defamation suits go to trial and result in massive judgments, there is virtually no path forward that doesn't involve some form of liquidation or a total change in ownership. For now, the lights are on, but the building is getting emptier by the day.