Lost in all the scuttlebutt over Whirlpool's plans for Maytag is the fate of the most iconic brand in either house -- Hoover.

Either its future owner invests, re-staffs and re-energizes its vac business, or sells it.

Recently the star among Maytag's divisions, floor care became the corporate whipping boy the past two years. Ralph Hake, chairman and chief executive officer, answered an analyst's question in February by saying, "We expect to see improvement in Hoover in 2005. If we don't get that, we'll have to look at other options."

One industry veteran with knowledge of Hoover's operations said floor care has become mired in bureaucracy, constricting its business. Many salespeople refused to relocate from North Canton, Ohio, to Newton, Iowa, and frustration exceeded morale, he said.

But there's still that name, like Band-Aid or Jell-O, a synonym for a product. No advertiser could buy such recognition.

"I say it ain't dead; it's wounded," said Bob Merckle, president of Electric Sweeper Service Co. "I think Hoover will absolutely flourish; it will get out from under Maytag."

Matthew Palma, vice president of marketing and sales for iRobot Consumer Robotics, pondered "what will be Whirlpool's focus on the Hoover brand? They've lost some market share the last few years and they've lost some high-end business."

Whirlpool has no expertise to speak of in floor care. It introduced a line of branded vacuum cleaners in 1985; sold its Danville (Ky.) division to a Matsushita joint venture in 1990; and exited the vac business in 1994.

Whirltag could retain many current Hoover specialists, and there is a plethora of laid-off talent, including CEOs, from Hoover and some leading rivals. Or Whirltag could bring in non-vac leadership, as Maytag did with Tom Briatico and Annette Bravard. Or Whirltag could decide floor care is not its core business and sell it to reduce debt.

Options to Palma included making Hoover a separate business unit or unloading it. There are foreign appliance companies seeking to grow in the United States, he said.

"My concern is it's going to be a foreign buyer," Merckle said. A possible sale to Electrolux/Eureka could raise further anti-trust issues. Might GE react? he wondered.

Samsung in particular manufactures for other companies and offers its own line in this country. The list of potential buyers could be long.

Source: http://cachtrongcay.net/slight-dip-in-full-size-vacuum-sales-doesnt-faze-makers/