NEW YORK — Polished, the troubled appliance retailer that began its corporate life as the local, family-owned Goedeker’s, is looking for a buyer.
Now headquartered in Brooklyn, the company announced Friday that it has hired Jeffries LLC “to help us evaluate credible potential transactions. The board and management team remain open to all pathways for maximizing value, including a sale of the company,” according to a press release.
However, the company noted, “There can be no assurance that any transaction or the sale of the company will occur.”
The move follows an announcement Thursday by the investment firm Morgan Dempsey Capital Management, which owns 7.9% of the Polished stock. In a filing with the Securities and Exchange Commission, Morgan Dempsey called for a “prompt sale” of the company.
The filing cited the company’s recent revelations that former CEO Albert Fouerti had charged the company $800,000 in expenses that were not related to its business, that it hired employees who did not have necessary legal documentation — presumably about their citizenship — and that it had not been properly tracking its inventory, specifically its damaged inventory.
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These revelations are likely to cause the stock to be undervalued, the filing said.
Morgan Dempsey is not asking for a change in management or board of directors, and noted that it voted for all of the company’s nominees to its board at its Jan. 19 annual meeting. However, the investment firm voted against the company’s proposal to issue 50 million additional shares of stock, bringing its total to 250 million shares.
The annual meeting was temporarily adjourned before reaching a conclusion about adding more stock. The issue remains unresolved.
Polished stock was up 14 cents, or 27%, to 68 cents in early trading Friday. That’s down more than 95% from its all-time high of $14.58 reached in February 2021.