Mike Lindell, the American entrepreneur best known for founding My Pillow, currently has a net worth of $0, a significant drop from his peak estimated net worth of $200-300 million. This decline is largely attributed to various controversies, substantial legal expenses, and the dramatic loss of revenue for his company, My Pillow.
From My Pillow’s Success to Financial Struggles
Lindell’s financial journey started with remarkable success. After founding My Pillow in 2005, the company experienced rapid growth, especially after its first infomercial aired in 2011. The product quickly became popular, leading to annual revenues that peaked at $280 million. By 2017, My Pillow was a household name, selling in major retail chains such as Walmart, Bed Bath & Beyond, and Kohl’s. At that time, industry analysts valued the company at approximately $500 million.
However, My Pillow’s fortunes took a downturn starting in 2020, coinciding with Lindell’s vocal support of Donald Trump and his promotion of baseless conspiracy theories surrounding the 2020 presidential election. Many major retailers began to distance themselves from My Pillow, discontinuing its products. Walmart’s decision in June 2022 to stop carrying My Pillow items dealt the most significant financial blow, causing a drastic reduction in sales. Lindell claimed that the company’s annual revenue dropped by over $100 million due to the fallout, with projected revenue for 2023 being only $5 million—a 95% decrease from its peak.
Financial Losses Due to Legal Battles
A significant portion of Lindell’s financial troubles is due to legal costs incurred in relation to his claims about the 2020 election. Between November 2020 and December 2021, Lindell reportedly spent between $25 million and $50 million of his personal funds trying to prove that the election was “stolen.” He also launched a social media platform called Frank Social, which cost him $1 million per month to maintain at one point. His involvement in spreading election misinformation has led to numerous legal issues, including a $1.3 billion defamation lawsuit filed by Dominion Voting Systems.
In October 2023, Lindell’s financial strain became evident when his lawyers requested to withdraw from his defense in the defamation case, citing millions in unpaid legal fees. Lindell admitted in interviews that he was “out of money” and had “lost everything,” indicating his inability to cover mounting expenses.
Debt and Asset Sales
To keep My Pillow afloat amid declining sales and legal battles, Lindell took on significant debt. In March 2023, he revealed that he had borrowed $10 million in 2022 and sold off personal assets to stay liquid. This included selling a building in Savage, Minnesota, in October 2022. Despite these efforts, his financial situation has continued to deteriorate, leading to further concerns about the future of his business.
Personal Life and Challenges
Mike Lindell’s life has been marked by a series of ups and downs. Born in Mankato, Minnesota, he struggled with addiction to cocaine and crack cocaine throughout the 1980s and 1990s. His substance abuse problems led to a failed marriage and significant financial troubles, including the foreclosure of his home. After getting sober in 2009, he founded My Pillow, which became a symbol of his recovery and resilience.
However, Lindell’s recent financial collapse has overshadowed his earlier success. In addition to his business struggles, he faced personal losses, including a failed second marriage and strained relationships. He has also been embroiled in legal disputes over false claims related to a relationship with actress Jane Krakowski, which both parties denied.
Political Involvement and Its Impact
Lindell’s political activism, particularly his unwavering support for Donald Trump, played a major role in his financial downfall. His vocal stance on election fraud alienated not only retailers but also financial institutions. In early 2022, the Minnesota Bank & Trust severed ties with him, citing reputational risks.
His attempt to become the Chair of the Republican National Committee in early 2023 also fell flat, as he garnered only four of the 167 votes cast. This defeat, combined with his business and legal troubles, further diminished his influence and resources.
Mike Lindell’s Net Worth Today
Currently, Mike Lindell’s net worth is reported to be effectively zero. His financial troubles, compounded by a series of unfortunate events, have led to the erosion of a once-thriving business and personal fortune. Despite the challenges, Lindell continues to remain active in his political and social endeavors, although his financial future remains uncertain.
FAQs:
How did Mike Lindell lose his fortune?
Lindell’s financial troubles began after his vocal support for Donald Trump and the promotion of election conspiracy theories. The loss of major retail partnerships, legal battles, and significant personal spending to prove election fraud all contributed to his financial decline.
What was Mike Lindell’s peak net worth?
At his peak, Lindell’s net worth was estimated to be between $200 million and $300 million.
How much did My Pillow’s revenue decline?
My Pillow’s annual revenue dropped from around $280 million at its peak to a projected $5 million in 2023, a decline of approximately 95%.
Did Mike Lindell face any legal issues?
Yes, Lindell faced a $1.3 billion defamation lawsuit from Dominion Voting Systems and was ordered to pay $5 million in a lawsuit related to a “Prove Mike Wrong” challenge.