Martha Stewart’s company is hoping a new CEO will rescue it from the junkyard.
Daniel Dienst — a scrap-metal disposal exec who joined the board at Martha Stewart Living Omnimedia just two months ago — is taking the wheel nearly a year after the departure of former CEO Lisa Gersh.
The less-than-glamorous appointment underscores Stewart’s struggling media empire, which continues to grapple with losses after shrinking its print and broadcast operations.
In a statement, Stewart praised Dienst’s “strong operating and financial discipline and a clear track record of creating significant value for shareholders.”
Analysts said that signals a tightened focus on corporate restructuring and possibly a plan to put troubled firm on the block.
“I was thinking they might hire a CEO with a background in merchandising, which is a key growth driver of the company,” noted Michael Kupinski, an analyst at Noble Financial.
“Certainly this guy doesn’t have any [merchandise experience], but that may actually be even more favorable.”
Shares of MSLO, which is slated to report third-quarter results Tuesday, gained 1 cent to close at $2.40, giving the company a market capitalization of $162 million.
Dienst, most recently CEO of Sims Metal Management, said he expects a turnaround plan to produce “good early results” but noted “there is a lot more to do to achieve our long-term objectives.”
Last week, MSLO saw a lucrative home-goods contract with JCPenney downsized sharply following a legal battle with Macy’s, which sued to protect its preexisting licensing deal for Martha Stewart-branded home goods.