Steve Madden

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Steven Madden, Ltd.
Type Public
Traded as NASDAQSHOO
Industry Footwear & Accessories
Founded 1990
Headquarters 52-16 Barnett Ave.
Long Island City, New York, USA
Key people Steve Madden - Founder, Creative & Design Chief
Edward Rosenfeld - CEO
Products Shoes & Accessories
Revenue IncreaseUSD $1.23 Billion (FY 2012)
Website www.SteveMadden.com
A shop located in Beijing
Steve Madden

Steve Madden (born 1958) is the founder and former CEO of Steven Madden, Ltd., a footwear company that bears his name.

Life and career[edit]

Madden was born in Far Rockaway, Queens, and has Irish and Jewish ancestry.[1] He grew up in adjoining Lawrence in Nassau County, New York.[2][3] The youngest of three brothers, he started the company with $1,100 in 1990 by selling shoes out of the trunk of his car. The brand reported revenues of $1.23 billion in 2012(FY 2012),[4] and is sold throughout the world.

He is married to Wendy Ballew, his former director of operations. The couple has three children, twins Jack and Stevie Madden,[5] and Goldie Ryan Madden.[6]

Retail stores[edit]

There are roughly 100 Steve Madden retail stores across the United States. While the company and its stores focus primarily on Steve Madden products, they also carry three more subcategorized Steve Madden lines; Madden Girl, STEVEN by Steve Madden and Freebird by Steven.

Internationally, Steve Madden has a presence in over 55 countries with roughly 185 retail stores & 180 concessions.

Betsy Johnson NYC
Steve Madden Companies, Betsy Johnson

Awards and honors[edit]

  • Footwear News Person of the Year Award (December 2011)[7]
  • Footwear News Best Performing Wholesaler Award (December 2011)[7]
  • Footwear News Company of the Year Award (November 2011)[8]
  • NASDAQ Honors Steve Madden & 20 Year Anniversary (June 2010)[9]
  • Two Ten Foundation Honors Steve Madden (June 2010)[10]
  • Nordstrom "Partners in Excellence" Award (May 2010)[11]
  • AAFA American Image Awards - Brand of the Year (May 2010)[12]
  • Footwear News Milestone Issue (February 2010) [13]
  • Footwear News Company of the Year Award (December 2009)[14]

Fraud[edit]

Madden's financial affairs were closely entangled with Long Island "pump and dump" brokerage Stratton Oakmont, cofounded by Madden's childhood friend Danny Porush.

In June 2000, a class action lawsuit was filed against Steve Madden[15] for issuing materially false and misleading statements during the Class Period. A settlement of $9,000,000 was reached in 2004.[16] In 2001, the SEC filed charges against Madden in Federal Court in New York state, alleging SEC violations.[17] Because the violations were not criminal in nature, the SEC was seeking to recover $1,637,000 in a combination of illegally avoided losses, interest, and a civil penalty.

In 2002, Madden was convicted of stock manipulation, money, and securities fraud. He was sentenced to 41 months in prison, and was made to resign as CEO from Steven Madden, Ltd. and from the board of directors.[18]

Shortly after resigning as CEO, Madden set himself up as a creative consultant with Steven Madden, Ltd., a position for which he drew $700,000 even when he was in prison.[19]

Madden served time in the Federal Prison Camp, Eglin, at Eglin Air Force Base, and later Coleman Federal Correctional Complex, near Ocala FL. Madden was released from prison in April 2005.[20] He then attended a New York City halfway house.[21] Madden's attorney, Joel Winograd, said that Madden would stay at the house for 60 days.[22] After his release from a halfway house, he was restricted to home confinement for a period.[23]

In popular culture[edit]

Steve Madden (played by Jake Hoffman) is featured in the Martin Scorsese film, The Wolf of Wall Street, which is based on the Jordan Belfort memoir of the same name. In the movie, Madden is seen visiting Stratton Oakmont, where Belfort gives the brokers a rousing pep talk about pushing Madden's stock.

References[edit]

  1. ^ http://nymag.com/nymetro/news/bizfinance/biz/features/4406/index1.html
  2. ^ Dominguez, Robert. "BRINGING IT BACK HOME. Steve Madden's new ad campaign focuses on his fashion center - Queens", Daily News (New York), October 19, 2006. Accessed September 15, 2008. "He grew up in Lawrence, L.I., where he worked in shoe stores from his high-school days until he started his own business in 1990, at 33, with an investment of just $1,100."
  3. ^ Daniel Porush biography. Jan 14, 2014 http://www.businessinsider.com/steve-madden-thought-his-wolf-of-wall-street-portrayal-was-too-nerdy-2014-1 |url= missing title (help). Retrieved 1 March 2014. 
  4. ^ http://www.wikinvest.com/stock/Steven_Madden_%28SHOO%29/Data/Revenue/2012
  5. ^ http://www.people.com/people/article/0,,20139835,00.html
  6. ^ http://celebritybabies.people.com/2013/03/13/steve-madden-welcomes-daughter-goldie-ryan/
  7. ^ a b http://www.wwd.com/footwear-news/business/readers-choice-best-worst-of-2011-5434220
  8. ^ http://www.wwd.com/footwear-news/people/company-of-the-year-steven-madden-ltd-5390715
  9. ^ http://globenewswire.com/news-release/2010/06/14/423145/194251/en/UPDATE-Steven-Madden-Ltd-SHOO-Chief-Executive-Officer-to-Ring-the-NASDAQ-Stock-Market-Closing-Bell.html
  10. ^ http://www.twoten.org/News-and-Events/Recent-News/YPfor210-Celebrated-Steve-Maddens-Twenty-Years-in-the-Shoe-Business.aspx
  11. ^ http://seattletimes.com/html/businesstechnology/2011897354_nordstrom19.html
  12. ^ http://www.prunderground.com/the-aafa-american-image-awards-to-honor-li-fung-steve-madden-john-bartlett-fern-mallis-gap-inc-shopbop-com-bob-suzanne-wright/002646/
  13. ^ http://www.wwd.com/wwd-publications/footwear-news/2010-02-22/
  14. ^ http://www.wwd.com/footwear-news/markets/company-of-the-year-steven-madden-ltd-2381531?navSection=issues
  15. ^ "Class Action Against Steve Madden". 
  16. ^ "Steven Madden, Ltd. case". 
  17. ^ http://www.sec.gov/litigation/litreleases/lr17015.htm
  18. ^ Walker, Rob (10 April 2002). "Genius of Capitalism: Steve Madden". Slate. Retrieved 28 October 2010. 
  19. ^ http://www.slate.com/id/2064214
  20. ^ Setoodeh, Ramin. "Back on His Feet Again." Newsweek. 2007. 1. Retrieved on January 10, 2010.
  21. ^ "MADDEN BACK IN NYC AFTER PRISON RELEASE.(Steve Madden, New York City)(Brief Article)." Footwear News. April 25, 2005. Retrieved on January 10, 2010.
  22. ^ "Steve Madden released from federal prison." Newsday. April 16, 2005. Retrieved on January 10, 2010.
  23. ^ Bonawitz, Amy. "Passages." People. June 27, 2005. Volume 63, No. 25. Retrieved on January 10, 2010.

Sources[edit]