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From Home Furnishing Business
Purple’s Special Committee Releases Statement After Coliseum Actions
January 22,
2023 by HFBusiness Staff in Business Strategy, Industry 
Purple Innovation, Inc. (NASDAQ: PRPL), a comfort innovation company known for creating the "World's First No Pressure® Mattress," today responded to the amended Schedule 13D filed with the Securities and Exchange Commission by Coliseum Capital Management, LLC on January 17, 2023.
The Special Committee of the Board of Directors provided the following statement:
The Special Committee values Coliseum's investment in Purple and shares Coliseum's enthusiasm for, and confidence in, the Company's plan and management team.
However, the Special Committee is disappointed that within days of the Special Committee rejecting Coliseum's inadequate and below-market buyout proposal, Coliseum is seeking to replace most of the Board.
The Special Committee acknowledges that Coliseum, as a 44.7% shareholder of Purple, is entitled to reasonable representation on the Board, and notes that Coliseum's Managing Partner Adam Gray has served on the Board since the time that Purple went public in 2018.
Moreover, Mr. Gray has served as the Chair of Purple's Nominating and Governance Committee since that committee's formation, providing Coliseum with significant influence over the Board's existing composition and corporate governance practices.
Coliseum's current proposal to reconstitute Purple's Board of Directors goes beyond what we consider appropriate: Coliseum is seeking the right to appoint, identify or approve every member of Purple's Board, leaving Purple's other shareholders with no representatives on the Board who have not been endorsed by, and who do not serve at the pleasure of, Coliseum.
We remain interested in working cooperatively with Coliseum, and we will continue to seek to do so while protecting the interests of all shareholders.
BMO Capital Markets Corp. is acting as financial advisor, Spotlight Advisors LLC is serving as strategic advisor and Sidley Austin LLP and Morris, Nichols, Arsht & Tunnell LLP are acting as legal advisors to the Special Committee.