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The site is an extension of the brand. Bad brand = bad website. There is really no way around this. Now, this is not to say that a website for a poor brand will necessarily look bad or be a waste of time. But in the context of the competitive market where good brands exist, such a website can be likened to a tiara on a mule. A great website starts with a great brand. Period.
In all seriousness, a company with a poorly conceived brand or poorly designed logo should enlist the services of a talented design agency to remedy the situation. Or perhaps perish in the marketplace.
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Tell them they could 'perish'
Offer a re-brand etc.