Burlington Coat Factory

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Burlington Coat Factory Warehouse Corporation
Type Public
Traded as NYSEBURL
Industry Retail
Founded 1972
Headquarters Florence, New Jersey, United States
Key people Monroe Milstein: Founder, Tom Kingsbury: President & CEO
Products Clothes, baby clothes, furniture, home decor items, and gifts
Revenue US $4.7 Billion (2013)
Owners Bain Capital
Employees 28,000
Website burlingtoncoatfactory.com

Burlington Coat Factory Warehouse Corporation (now commonly referred to simply as Burlington Stores, Inc.) is an American national off price retailer, with 523 stores in 44 states and Puerto Rico, with its corporate headquarters located in Burlington Township, New Jersey. In 2006, it was acquired by Bain Capital in a take-private transaction and in 2008, Tom Kingsbury became President and CEO. The company went public again in 2013.

History[edit]

The company was formed and incorporated in 1972 when Henrietta Milstein convinced her husband Monroe to purchase a former factory outlet in Burlington, New Jersey for $675,000, using money she had saved from her job as a librarian for most of the $75,000 down payment.[1][2] Monroe and his father, Abe Milstein, had been running a successful wholesale and retail outerwear business together since 1946.[3] Initially, the Milsteins sold coats and jackets wholesale, but in order to become less dependent on the seasonal coat business, they gradually began adding additional clothing items and accessories, eventually expanding into linens, gift items, a baby department and shoes.[4][5]

A second location was opened in 1975 in Copiague on Long Island, and Milstein asked his son Lazer, who was living in Israel at the time, to return home and act the store's legal owner for the new location. Lazer agreed, on the condition that the store be closed Saturdays, his Sabbath.[2] At the time, businesses faced legal action for being open on Sunday, with an exception made for religions observing a different Sabbath.[6] In 1983, with 31 locations, the company, whose name was Burlington Coat Factory Warehouse Corporation since it was bought by the family in 1972, went public.[7]

In 2006, the company was purchased by Bain Capital Partners for $2.06 billion.[1] The Milstein family held almost 30 million shares of the Burlington Coat Factory Warehouse Corporation, making approximately $1.3 billion, and Monroe Milstein was unassociated with the business following the sale, although two of his sons, Stephen and Andrew, stayed on briefly.[2] Mark Nesci, the former executive vice president and chief operating officer, was named to serve as the acting CEO.[8] A holding company called Burlington Coat Factory Holdings Inc., was formed to be the ultimate parent of the chain.[9]

In July 2012, the company received a $40 million incentive from the New Jersey Economic Development Authority as part of the state's GrowNJ program in order to build a new headquarters in Florence, adjacent to its existing headquarters, keeping the company from moving its headquarters outside the state.[10]

On June 27, 2013, Burlington filed its S-1 registration statement with the SEC for an initial public offering.[11] In October 2013, the company's stock rose more than 40% on its first day of trading.[12] The company reported $4.35 billion in sales for the 12-month period ending August 3, 2013.[13] As of October 2013, the company operated 503 stores in 44 states and Puerto Rico under the names Burlington Coat Factory, Cohoes Fashions, Baby Depot, MJM Designer Shoes and Burlington Shoes.[14][15]

According to Hoovers, the top competitors to Burlington Coat Factory are T.J. Maxx, Ross Stores and Bed Bath & Beyond.[16]

Charitable Partnerships[edit]

Burlington has partnered with charitable organizations for several years. Since 2002, they have partnered with the joining the Leukemia and Lymphoma Society’s Light the Night campaign, collecting donations at the store checkout.[17][18] With an annual fundraiser that runs from July through October, the company raised more than $3 million in 2013, bringing the total raised by the company to date to more than $19 million.[19]

In 2006, Burlington launched the Warm Coats and Warm Hearts Drive to collect coat donations for those in need. Partnering with ABC's Good Morning America and the national nonprofit Fashion Delivers, Burlington stores served as drop off spots for the donations, which were then distributed within the area by local charities. Since the program's inception, over 1.2 million coats have been collected and distributed.[20][21]

In 2012, the company first partnered with WomenHeart: The National Coalition for Women with Heart Disease to promote women’s heart health education during National Heart Health Month[22][23] As part of this partnership, the company holds a yearly Red Dress Event, where red dresses are sold in stores, with $1 from every sale donated to WomenHeart.[24] In 2014, as part of the partnership they launched the “Heart of Style Tour”.[25] For the tour, a bus traveled to various store locations, with heart health professionals on board providing blood pressure tests and Body Mass Index (BMI) tests and education about women's heart disease.[26]

Business issues[edit]

Under investigation from animal welfare organization Humane Society of the United States, Burlington Coat Factory has been accused of labeling real fur products as "faux fur". The company agreed to pull the false advertisements after an undercover investigation revealed "faux fur" as actually made from the pelts of animals killed in China.[27] Burlington Coat Factory's coats have also been found to contain dog pelts.[28][29][30]

Burlington Coat Factory's logo is often supplemented with the tag "Not Affiliated with Burlington Industries."[31][32] When Burlington Coat Factory settled a trademark dispute with fabric maker Burlington Industries in 1981, Burlington Coat Factory agreed to say in advertising that the two companies are not affiliated.[33][34] Even though Burlington Industries ceased operations in 2004, it would be five years before the "not affiliated" disclaimer would disappear from TV commercials. As of 2009, the sub heading has been removed from all logos used by the company.[35]

The old Burlington Coat Factory on 45 Park Place in New York, planned to be replaced by the unrelated controversial Park51

In the September 11, 2001 attacks, after hijacked United Airlines Flight 175 penetrated through the South Tower of The World Trade Center, part of the plane's landing gear and fuselage came out the north side of the tower and crashed through the roof and two of the floors of the Burlington Coat Factory at 45–47 Park Place, between West Broadway and Church Street, (600 feet (180 meters)) north of the former World Trade Center. The store had been the company's first location in Manhattan, opened in 1991.[36] The plane parts destroyed three floor beams, and severely compromised the building's internal structure.[37][38][39] Nearly nine years later, the building was part of a national controversy, as efforts to build a Muslim center and mosque at the site as the "Cordoba House" sparked protest.[40][41][42][43][44]

References[edit]

  1. ^ a b Bloomberg News (2006-01-19). "Bain Capital Purchases Burlington, a Retailer". New York Times. Retrieved 2014-02-20. 
  2. ^ a b c Strauss, Robert (2006-02-05). "$2 Billion Later - NYTimes.com". New York Times. Retrieved 2014-02-20. 
  3. ^ "Burlington Coat Factory Offers Range Of Rugs. - Free Online Library". Thefreelibrary.com. 1998-09-14. Retrieved 2014-02-20. 
  4. ^ "Apparel Stores Analysis: Monroe Milstein - Burlington Coat Factory Warehouse Corporation (bcf) | Round Table | SHX:TSE". Twst.com. Retrieved 2014-02-20. 
  5. ^ "Burlington Stores, Inc. | Company profile from Hoover's | 609-387-7800". Webadept.hoovers.com. 2010-10-21. Retrieved 2014-02-21. 
  6. ^ "Twists, quirks and coats Success was based on family, luck - and a crucial rule. - Philly.com". Articles.philly.com. 2011-08-30. Retrieved 2014-02-20. 
  7. ^ "Burlington Coat Factory Corporate Office | Corporate Offices & Headquarters". Corporateofficehq.com. Retrieved 2014-02-20. 
  8. ^ "Milsteins' biggest deal Burlington Coat sold for $2.06 billion. - Philly.com". Articles.philly.com. 2006-01-19. Retrieved 2014-02-20. 
  9. ^ By Anne D'Innocenzio/AP Retail Writer. "Burlington Stores shares climb in market debut". The Reporter. Retrieved 2014-02-20. 
  10. ^ Michael Mancuso/The Times (2012-07-12). "Burlington Coat Factory receives $40M from GrowNJ program to keep headquarters in New Jersey". NJ.com. Retrieved 2014-02-20. 
  11. ^ "Burlington Holdings, Inc. (Form: S-1, Received: 06/27/2013 14:04:05)". Nasdaq.com. Retrieved 2014-02-20. 
  12. ^ Pfeifer, Stuart (2013-10-02). "Burlington Coat Factory IPO a big hit with investors". latimes.com. Retrieved 2014-02-20. 
  13. ^ "Bain Capital-backed Burlington Stores sets terms for $200 million IPO". NASDAQ.com. Retrieved 2014-02-20. 
  14. ^ October 3, 2013 (2013-10-03). "Burlington Expects $250 Million from IPO - MRketplace / MR Magazine". Mrketplace.com. Retrieved 2014-02-20. 
  15. ^ Avik Das (2013-10-02). "Burlington Stores returns to market, shares jump 50 pct - Chicago Tribune". Articles.chicagotribune.com. Retrieved 2014-02-20. 
  16. ^ "Burlington Stores, Inc. | Company Profile from Hoover’s". Hoovers.com. Retrieved 2014-02-20. 
  17. ^ "Burlington to raise funds for blood cancer research". Retailing Today. 2013-07-08. Retrieved 2014-02-20. 
  18. ^ "Style Files: Fashions that benefit Light the Night". WGN-TV. 2013-09-04. Retrieved 2014-02-20. 
  19. ^ Bonander, Ross (2012-12-07). "Burlington Coat Factory Raises $3 million for the LLS". Lymphomainfo.net. Retrieved 2014-02-20. 
  20. ^ "Warm Coats & Warm Hearts Drive - ABC News". Abcnews.go.com. Retrieved 2014-02-20. 
  21. ^ "Fashion Delivers". K.I.D.S./Fashion Delivers. Retrieved 2014-02-20. 
  22. ^ "About Us - WomenHeart: The National Coalition for Women with Heart Disease". WomenHeart. Retrieved 2014-02-20. 
  23. ^ "Heart of Style Tour". Modern Day Moms. Retrieved 2014-02-20. 
  24. ^ "SunThisweek | Burlington Coat Factory launches red dress event". sunthisweek.com. 2014. Retrieved 10 April 2014. 
  25. ^ "Community Calendar: Feb. 3 - March 29". Njtoday.net. 2014-01-30. Retrieved 2014-02-20. 
  26. ^ "‘Heart Of Style’ Heart Disease Education Bus Set To Roll Into Philadelphia « CBS Philly". Philadelphia.cbslocal.com. 2014-01-30. Retrieved 2014-02-20. 
  27. ^ "Burlington pulls faux coat ads : Corpus Christi Caller Times". Caller.com. 2006-12-13. Retrieved 2014-02-20. 
  28. ^ Boccio, Rose (January 2, 2001). "Fur-Raising Reality Dog And Cat Pelts Fetch A Profit". Pqasb.pqarchiver.com. Retrieved May 30, 2009. 
  29. ^ View all comments that have been posted about this article. (February 5, 2008). "Md. Bill Seeks to End Mislabeling of Fur Coats". Washingtonpost.com. Retrieved May 30, 2009. 
  30. ^ Mooar, Brian (December 18, 1998). "Secret Search Led to Discovery of Dog Fur in U.S. Clothing; Investigation: Humane Society estimates at least 2 million domesticated animals abroad are killed annually to make garments, toys and other products". Pqasb.pqarchiver.com. Retrieved May 30, 2009. 
  31. ^ "Burlington Coat Factory Ad". Pittsburgh Post-Gazzette. 1997-01-15. Retrieved 2014-02-20. 
  32. ^ "Madison Capital Times, Thursday, April 10, 2003, Page 82". Newspaperarchive.com. Retrieved 2014-02-20. 
  33. ^ "Burlington Coat to clarify ads. (Burlington Coat Factory Warehouse Corp. ordered to change its advertising in trademark infringement suit with Burlington Industries Inc.) (Brief Article) | HighBeam Business: Arrive Prepared". Business.highbeam.com. 1992-04-14. Retrieved 2014-02-20. 
  34. ^ "1990 Burlington Coat Factory Commercial". YouTube. 1990-12-06. Retrieved 2014-02-20. 
  35. ^ "Burlington Holdings, Inc. (Burlington Coat Factory)". Retail Career Hub. 2013-06-27. Retrieved 2014-02-20. 
  36. ^ http://www.highbeam.com/doc/1G1-8949646.html
  37. ^ World Trade Center emergency damage .... January 3, 2008. Retrieved August 4, 2010. 
  38. ^ World Trade Center building .... Retrieved August 8, 2010. 
  39. ^ "Titleer". 74. Retrieved August 8, 2010. 
  40. ^ Hernandez, Javier C. (May 25, 2010). "Vote Endorses Muslim Center Near Ground Zero". The New York Times. Retrieved August 1, 2010. 
  41. ^ Dunning, Matt (May 6, 2010). "CB1 Committee Hails Plans for a Mosque Two Blocks from WTC Site". The Tribeca Trib. Retrieved August 3, 2010. 
  42. ^ Funk, Luke (January 19, 2010). "Ground Zero Mosque Plan Moves Forward; "Shame On You" Shouted at Panel". Fox News. Retrieved August 4, 2010. 
  43. ^ Hernandez, Javier C. (July 13, 2010). "Planned Sign of Tolerance Bringing Division Instead". The New York Times. Retrieved August 1, 2010. 
  44. ^ Structural Engineers Association of New York, Noah Klersfeld, Guy Nordenson and Associates, LZA Technology (2003). World Trade Center emergency damage assessment of buildings: Structural Engineers Association of New York inspections of September and October 2001 1. Structural Engineers Association of New York. Retrieved August 3, 2010. 

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