Bedmaker Select Comfort plans more layoffs

Updated: March 13, 2008 - 12:04 AM

6
comments
resize text
print
buy reprints

Tweet
share

email
Email share

your name

your email

recipients email

+ add a comment add a comment

For the second time in a month, troubled Plymouth-based Select Comfort confirmed Wednesday that it is laying off workers.

Spokeswoman Gabby Nelson confirmed the new layoffs are companywide but declined to say how many or where.

The company, which recently laid off 20 of its 3,000 workers, has been pressured by shareholders to close money-losing stores and stop opening stores.

Select Comfort's stock price has plunged 80 percent in 12 months after the company missed earnings forecasts and disappointed Wall Street with decreases in earnings.

"I am certainly not surprised that they are reducing their head count," said Craig-Hallum Capital analyst Bob Evans. "I bet you the [layoff is] at least 5 percent. Even if it was 10 percent, it would not shock me. ... We have heard rumblings for a little while. So it makes a lot of sense given the difficult [sales] results they have had recently."

Piper Jaffray analyst Tony Gikas said the layoffs "are probably even a little late. Business has been weak now for a year."

Select stock closed Wednesday at $3.73, down 27 cents.

DEE DEPass