‘We’re Not Going Back’: Family Businesses Struggle To Escape From ‘Disappointment’ Of ‘The Biggest Brand of the Century’
Posted On July 25, 2021
The company has struggled to keep up with the influx of new customers since its debut, and it has been forced to reduce the number of employees it has.
The company is in a financial struggle, and will soon have to make some tough decisions.
“We have a great product and a loyal customer base, but we’re not going back to being a family business,” CEO John H. Schiller told investors on a conference call.
He has said he is not going to be able to keep the company afloat with just one person at the helm.
Schiller said that he is going to look at “a variety of options” in the near term.
We’re not doing this for the love of the business, he said.
This is not an easy decision, he added.
But there’s one other factor that will determine how long the company can continue to operate, he continued.
And it’s going to take some tough conversations with the investors and the board, he acknowledged.
It’s a tough business.
We’re not making any money.
We need to take care of our people and our family, he told the investors.
However, the company is not alone in its struggles.
Since its debut in July 2013, the family-owned company has seen its stock plunge more than 45%.
It has also lost its coveted spot at the top of the market.
A year later, the stock is down more than 50%.
And on Tuesday, its stock fell again.
On Thursday, the Dow Jones Industrial Average closed down more then 3%.
Shares of Home Depot fell more than 9% in early trading, wiping out nearly $1.3 billion in market value.
Hiring for the company has been hard.
More than 1,200 people have been laid off since it launched in July, according to a Reuters review of company records.
As part of that process, Home Depot has been looking for ways to boost its revenue, which has slipped since the start of the year.
While the company says it will “continue to reinvest in its business, we do not anticipate this investment to continue at this time,” it added in a statement to Reuters.