Home Improvement: Home Depot Hits Hard Times

The bad news keeps coming at Robert Nardelli's former empire, as the company is contemplating the sale of its wholesale supply unit:

Feb. 12 (Bloomberg) -- Home Depot Inc., the largest home- improvement retailer, may sell its wholesale unit after investors said the company should get rid of the division because of its low profits.The company said it's also considering a spinoff or initial stock offering of HD Supply, which sells equipment and supplies to construction companies. The division has $12 billion in annual revenue, about 12 percent of Home Depot's total.

MarketWatch has a more in-depth analysis of the possible moves, including background on how Nardelli's decision to purchase the supply company was the first real sign of his Captain Ahab-esque attitude towards running the company:

Particularly galling to analysts and investors was that Nardelli would buy the business, which sells products to professional contractors, amid growing competition from smaller rival Lowe's Cos., and just as the nation's housing market was about to stumble.

Of course, it won't really matter to Nardelli, since he's been assured his golden parachute, but it's fascinating to watch this company scramble frantically to repair the damage he did while he waltzes off into the sunset. Another tale of the housing bubble, really.

Posted at February 12, 2007 04:08 PM

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The bad news keeps coming at Robert Nardelli's former empire, as the company is contemplating the sale of its wholesale supply unit: Feb. 12 (Bloomberg) -- Home Depot Inc., the largest home- improvement retailer, may sell its wholesale unit after investors said the company should get rid of the division because of its low profits.The company said it's also considering a spinoff or initial stock offering of HD Supply, which sells equipment and supplies to construction companies. The division has $12 billion in annual revenue, about 12 percent of Home Depot's total. MarketWatch has a more in-depth analysis of the possible moves, including background on how Nardelli's decision to purchase the supply company was the first real sign of his Captain Ahab-esque attitude towards running the company: Particularly galling to analysts and investors was that Nardelli would buy the business, which sells products to professional contractors, amid growing competition from smaller rival Lowe's Cos., and just as the nation's housing market was about to stumble. Of course, it won't really matter to Nardelli, since he's been assured his golden parachute, but it's fascinating to watch this company scramble frantically to repair the damage he did while he waltzes off into the sunset. Another tale of the housing bubble, really.