Can Daniel Dienst Turn the Martha Stewart Empire Around?

On Oct. 29, the newly appointed chief executive officer of Martha Stewart Living Omnimedia (MSLO), Daniel Dienst, spoke publicly for the first time during an earnings conference call. It was not a cheery occasion. During the third quarter, the company had lost $4.3 million. Falling publishing revenues had once again eclipsed growth in merchandising. Moving forward, Dienst said, he was prepared to make tough decisions that should have been made long ago. His lack of experience in retail and media would be an asset, he argued, not a liability. “I’m not burdened by history,” he said.

In fact, his specialty is unburdening people of their things. In the last 10 years, Dienst had been a rising star in scrap metal recycling. So it was somewhat of a surprise when Martha Stewart announced earlier in October that she’d hired him. As the CEO of Sims Metal Management, the 48-year-old Dienst had come to the high church of American domestic design by way of the junkyards of New Jersey.