Clinton Group optimistic about future of Select Comfort

By Lisa Kerner

Charlotte, N.C., April 4 - Investors led by Clinton Group Inc. said Select Comfort Corp. is moving in the right direction by focusing on driving sales through new marketing strategies and implementing appropriate cost reductions, according to a schedule 13D filing with the Securities and Exchange Commission.

Clinton Group discussed the company's business with Select Comfort chairman Ervin Shames and chief executive officer William McLaughlin, the filing said.

"While we are aware the mattress industry remains pressured by a weak macroeconomic environment, we believe management and the board is now cognizant of its previous missteps and focused on improving the company's performance in 2008 and beyond," Clinton stated in the filing.

According to the SEC filing, the investors recently increased their interest in Select Comfort to 6.1% believing that the market "has misunderstood the prospects of the business" and that the company will "soon return to historical levels of profitability and valuation."

Select Comfort is a Minneapolis-based developer, manufacturer and marketer of adjustable-firmness beds and other sleep-related accessory products.

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