Arlan's
 | |
| Industry | Retail |
|---|---|
| Founded | 1945 |
| Founder |
|
| Defunct | 1973 |
| Fate | Bankruptcy |
| Headquarters | , United States |
Area served | United States |
Arlan's was an American discount store chain.
Arlan's was founded in 1945 by William, Herbert, and Lester Palestine in New Bedford, Massachusetts.[1]
In 1963, executives tried to start talks with King's of Newton, Massachusetts, regarding a merger. These plans were briefly revived in 1966.[2]
Arlan's opened its 50th store in Cudahy, Wisconsin, in 1965. At this point, the chain had $174 million in revenue, and stores in 18 states from Maine to Colorado.[3] It also owned 18 locations of a toy store called Play World.[4] The chain peaked in size at 119 stores in 1970, by which time the company began experiencing heavy operating losses. The losses would later be attributed, in part, to an expansion strategy that was too geographically diverse for the chain's size, leading to inefficient distribution.[5] In 1971, Arlan's explored the possibility of filing for bankruptcy, but it was concluded that such an action would be premature. That same year, Arlan's sold 16 stores to Target.
In May 1973, two years after the resignation of co-founder Herbert Palestine, Arlan's filed for Chapter 11 bankruptcy. By that time, the chain had contracted to 73 stores.[6][7][8] An ambitious plan to revive sales during the Christmas 1973 season, called "Mission Impossible" by company insiders and executed without disclosure to, or approval of, the court, failed to turn the chain's fortunes around and an additional 38 stores closed by January 1974. The Securities and Exchange Commission successfully petitioned the court to have the bankruptcy converted to Chapter 10. The chain continued to shrink dramatically under bankruptcy as losses mounted and Arlan's liquidated its final ten stores in early 1975 by order of the bankruptcy court. Subsequent court rulings would document various unethical practices by Arlan's legal representatives, regarding fees and a lack of candor.[9][10]
References
[edit]- ^ Drew-Bear, R. (1970). Mass Merchandising: Revolution & Evolution. Fairchild Publications. Retrieved 2015-06-24.
- ^ "Arlan's, King's Revive Merger Discussions Dropped 3 Years Ago". pqasb.pqarchiver.com. Archived from the original on January 31, 2013. Retrieved 2015-06-24.
- ^ "The Milwaukee Journal - Google News Archive Search". Retrieved 2015-06-24.
- ^ Sloane, Leonard (9 December 1973). "Supermarkets For Toys Get a Big Play". The New York Times. Retrieved 1 May 2017.
- ^ Arlan's Stores Petitions For Bankruptcy Action The New York Times, May 14, 1973
- ^ "Arlan's Files For Protection Under Chapter 11". pqasb.pqarchiver.com. Archived from the original on January 31, 2013. Retrieved 2015-06-24.
- ^ "The Milwaukee Journal - Google News Archive Search". Retrieved 2015-06-24.
- ^ Eisler, K.I. (1990). Shark Tank: Greed, Politics, and the Collapse of Finley Kumble, One of America's Largest Law Firms. BEARD GROUP Incorporated. p. 32. ISBN 9781587982385. Retrieved 2015-06-24.
- ^ In the Matter of ARLAN'S DEPARTMENT STORES, INC., Debtor. United States District Court, S. D. New York. December 6, 1978. Leagle. Retrieved March 2, 2018
- ^ In the Matter of Arlan's Department Stores, Inc., Debtor, 615 F.2d 925 (2d Cir. 1979) Justia Retrieved March 2, 2018