Clinton Group, a 7.73 percent stakeholder in Select Comfort Corp., sent a letter to the board Monday calling for the replacement of Chief Executive Officer Bill McLaughlin and revision of the company's marketing strategy.
In the letter, disclosed in a filing with the Securities and Exchange Commission, Clinton Group also expressed disappointment that the Minneapolis bed retailer declined the shareholder's request for two board seats.
Clinton Group suggested that Select Comfort revise its marketing strategy to refocus on direct marketing and immediately cease all new store openings and unnecessary capital expenditures until sales improve.
Shares of Select Comfort closed Monday at $2.35, up 3 cents.
DOW JONES NEWS WIRESGabelli funds report stake in PepsiAmericas
A group of funds managed by Mario Gabelli's Gamco Investors Inc. on Monday reported a 5.25 percent stake in PepsiAmericas Inc. The Gabelli group beneficially owns about 6.7 million shares of the Minneapolis bottler of PepsiCo beverages, according to a filing with the Securities and Exchange Commission.