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David Perry
Bedding Editor


Hi! I'm David Perry, the bedding editor for Furniture/Today. This is an online version of my Bedding Today column, which appears weekly in the pages of Furniture/Today.

I invite you to take advantage of this blog format to share your comments on the topics that I tackle each week.


Thursday, 3/27/2008
News wires crackle, ending McIlquham Era at Sealy
The calls to my cell phone and my business phone started coming in mid-afternoon on a sunny day in Baltimore, where much of the bedding world was gathered for the International Sleep Products Assn. Expo

Those insistent calls signaled a major development in the mattress industry, one that had been speculated about for months. Funny thing about speculation: It means nothing until it yields to reality. 

At 4:20 p.m. on March 12, Sealy issued a press release that said the Dave McIlquham Era at the company had come to an end. His resignation as Sealy’s chairman, president and CEO was effective immediately, the release said. His 18-year career at Sealy, one that I witnessed from the beginning, was over. I can’t say the development was surprising. I had been hearing for weeks that Sealy was looking for new top leadership. It wasn’t hard to understand why: Sealy’s stock was sinking and the company was losing ground to key competitors. 

But I have to admit to a feeling of sadness when I read the press release, which was burnished with all the typical praise for a departing executive, one who would be pursuing “new opportunities” and would “spend more time with his family.” 

Say what you will about McIlquham — and opinions at the ISPA show were decidedly mixed — he was a survivor. He came out on top in several ownership changes, any one of which could have ended his career at Sealy. For years he answered to Kohlberg Kravis Roberts and Co., the private equity firm featured prominently in “Barbarians at the Gate,” the book about early days of leveraged buyouts. Managing investors like KKR is not easy, I’ve been told, and must have taken considerable skill. The fact that he survived for as long as he did is a testament to his ability as a CEO. 

It also must be noted that Sealy’s sales grew dramatically in the almost two decades that McIlquham held top positions there, moving from the marketing department to the CEO’s suite, which he occupied for the last six years. Yes, Sealy has stumbled recently. But it was a strong performer for many years. 

I have several good memories of working with McIlquham. A recent experience stands out. Last fall top Sealy executives invited me to lunch at their headquarters for a private discussion of how Sealy was handling several key industry issues. McIlquham asked me what I thought, listened attentively, and accepted my constructive criticisms. Not too many CEOs would welcome such candid comments. That McIlquham did was one sign of his leadership skills.
 

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at 3/28/2008 6:00:31 AM, Sealy Employee said:
Dave, "The fact that he survived for as long as he did is a testament to his ability as a CEO" Unfortunately, you could not be more wrong. Having worked for him, he survived by greed and by firing anyone who he perceived as a threat. Look how many other top leaders left the company in the past few years to "explore other opportunities". Dave had no loyalty whatsoever by those who worked for him, because he could care less about his employees. The only thing he looked out for was himself, and lining his own pockets. Sealy's growth during his tenure had more to do with the overall housing market sky rocketing (a rising tide floats all boats), and less to do with anything Dave led. What he left in his wake is a company headed for bankruptcy or yet another buy-out. Dave will not be missed, and hopefully no other company will be foolish enough to think he should be given another shot.

at 3/30/2008 11:13:46 AM, Carl said:
Bravo! Thank God Sealy is making changes from the top. Now they just need to clean house all the way to the bottom of management. The arrogance of this Co. is so unreal. As a Sealy retailer I am always stunned at how BAD they are at listening to the front line (retailers). It so reminds me of the domestic auto makers in the 70s-80s "WE DON'T CARE...WE DON'T HAVE TO...WE ARE SEALY". Just keep making poor quality pillow top JUNK. The Sealy name has been trashed by such poor quality. The "new" 2008 Posturepedic just coming out is a pure example our how out of touch they are JUNK.

at 4/1/2008 5:54:41 AM, Sealy Employee said:
You are right Carl, The changes had better not stop just at the top. Sealy did used to stand for the best mattress at the best price. Its brand equity was strong. But, under the leadership of McIlquham and frankly many of the other few leaders who are still there and have not been fired (Dobbs and Rogers), their arrogance basically killed the company. This "new" posturepedic line is a great example. It is basically the same beds, with a few new 1/2" layers of foams that don't matter, sold as "new innovation". Sealy basically thinks that retailers are fools, and customers are even bigger fools. You can only hope that when the board finds a new CEO, they find someone who truly cleans house, drives the brand back toward a leadership position, and cleans up the mess of the past few years. But frankly it may be too late.

at 5/6/2008 9:40:44 AM, Real Sealy Employee said:
It is interesting to read these comments by supposed Sealy employees and retailers. I for one do not agree with those sentiments. The retailers have benefitted very much from all the advertising funds that Sealy products have generated, while at the same time allowing Tempurpedic to thrive in their stores while not cooperating at all and driving retailer margins down. I have never been at a meeting in which a Sealy employee told a retailer we don't care, we are Sealy. That is pure fiction. As for quality, I would put Sealy quality against any manufacturer at same price any day. In regards to listening to our retailers concerns; has Tempurpedic listened to retailers concerns? Are they making dealer specific product? Are they bringing in top customers to ask opinions? They are dictating to retailers and retailers are following. How come you don't write about that?



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