Lessons: Maytag's Blues

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Much of the hand wringing over the sale of Maytag--particularly when a Chinese firm put in a bid--came from nostalgia over the brand. The Maytag repairman may be one of the most recognized brands in America, but the company has to keep the name fresh. Though it has cast a younger, buffer repairman, Maytag has been selling the same idea--we're the old reliable--even as consumers' tastes shifted toward more sophisticated products. That left an opening for specialty lines from GE and Whirlpool and upstarts like LG and Samsung. Thanks to stylish marketing, those brands are synonymous with high-end, high-quality products. LG has a deal to sell its products in Home Depot, Samsung at Lowe's. Maytag just lost its space at Best Buy to Whirlpool. Who needs nostalgia when you've got cool?

Newton certainly isn't clinging to the past. "A lot of people are getting excited about the new stuff coming to town," says home remodeler Chris Palmas. With some retooling of its own, Maytag may soon feel the same optimism.

--With reporting by Eric Ferkenhoff/Newton