When Penny & Mustard Appliances Disappear
DFW Home Furnings is on its last legs, and Penny &s; Mustards is on the rebound.
While DFW is one of the most recognizable brands in the home furnishments market, its not the only one struggling to survive.
Penny & ; Mustards, the makers of Penny &ing; Mustashards Home Furnishings, has seen its stock prices drop more than 50% since 2011, after being a darling of millennials.
While its been a slow burn, the company is looking to revive.
According to a Bloomberg report, the firm is looking at buying the Penny & Mustadegings brand for about $500 million, or $2.50 per share.
The company also plans to launch a new product line called Penny &ed; Mustad.
“We want to give our customers a fresh perspective and a fresh look at what they can expect from us and what we can do,” Penny & amp; Mustdgies Chief Financial Officer Tim Bowers told Bloomberg.
“This is a new era for Penny < Mustars, we are excited about our opportunity and the opportunity for the industry.”
Pierpont Morgan Securities analyst John Schoen said that the company’s stock is still worth about $4.50, but that it could fall further if the company doesn’t do anything to revive its sales.
“This could be a short-term opportunity for us, but if it goes south, it could be long-term,” he told CNBC.
Pinecone Capital analyst John R. Wiesner also pointed to the company as a “risky bet” given that the brand has lost over 50% of its value over the past four years.
Bowers said that Penny &ams; Mustades growth has been driven by “very strong” growth in online sales, which is also “not sustainable.”
“It’s hard to find any other company that has been in that space,” he added.
A spokesman for Penny&Mustard declined to comment.
[Bloomberg]
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