Broadway Stores

Broadway Stores, Inc. was an American department-store holding company headquartered in Southern California. Its corporate history began in 1950, when The Broadway, a rapidly expanding Los Angeles department-store chain, merged with Hale Bros. Stores of Northern California. The combined company was initially named Broadway-Hale Stores and used the merger to build a broader retail group while retaining the local identities of many acquired chains. The company's principal operating banner was The Broadway, which expanded southward to San Diego in 1961 and eastward to Phoenix in 1968. Broadway-Hale also pursued a diversified acquisition strategy. It purchased the mail-order and novelty-retailing business Sunset House, acquired Emporium-Capwell in the San Francisco Bay Area, and built a national specialty-retail portfolio that included Neiman Marcus, Waldenbooks, Bergdorf Goodman, Holt Renfrew, John Wanamaker, Thalhimers, and Contempo Casuals. This strategy gave the company exposure to luxury, books, specialty apparel, mail order, and traditional department stores, but it also created a large and operationally complex organization. In 1974, the corporation adopted the name Carter Hawley Hale Stores, Inc., reflecting the leadership of Edward W. Carter and Prentis Hale. Philip M. Hawley became a central executive figure and later served as chief executive. During the late 1970s and early 1980s, Carter Hawley Hale continued acquiring businesses and expanding the geographic reach of its department-store divisions. The company divided The Broadway into Southern California and Southwest operations, expanded banners into states including Arizona, Colorado, New Mexico, Nevada, Utah, and Virginia, and consolidated Emporium and Capwell stores into Emporium-Capwell. The expansion produced substantial sales but weak profitability. Carter Hawley Hale faced criticism for its acquisition-heavy structure and became the target of takeover attempts by The Limited in 1984 and 1986. In response, it sold or separated several assets. Waldenbooks was sold to Kmart, Holt Renfrew was sold to the Weston family, John Wanamaker was sold to Woodward & Lothrop, and the specialty-store businesses were separated into Neiman Marcus Group. Thalhimers was later sold to May Department Stores. These transactions reduced the company's scope but did not fully resolve its financial and competitive problems. By the end of the 1980s, the core California department-store business was under pressure, particularly from Nordstrom. The company filed for Chapter 11 bankruptcy protection in 1991. After approximately eighteen months of restructuring, the Zell/Chilmark Fund, associated with financier Sam Zell, acquired a controlling interest and the reorganized company emerged from bankruptcy in October 1992. The corporate name was changed from Carter Hawley Hale Stores to Broadway Stores in 1994 in an effort to signal renewal. David Dworkin succeeded Hawley as chief executive and pursued store remodeling, operating streamlining, and tighter cash management. The turnaround did not last. On August 8, 1995, lenders declined to provide additional financing needed to pay suppliers and fund inventory. Broadway Stores agreed to sell itself to Federated Department Stores later that month, in a transaction valued at $1.6 billion. Federated completed the acquisition on October 12, 1995. The Broadway, Emporium, and Weinstock's nameplates were subsequently consolidated with Federated's Macy's West and Bullock's operations. Broadway Stores was dissolved as a business in 1996, although selected properties were sold, closed, or redeveloped for other retail uses, including Bloomingdale's locations.

Broadway Stores originated in the 1950 merger of The Broadway, a Los Angeles department-store chain, and Hale Bros. Stores of Northern California. Edward W. Carter became president of the combined Broadway-Hale Stores, while the company preserved the local identities of its constituent businesses. The Broadway expanded into San Diego in 1961 and Phoenix in 1968. In the same period, the company acquired Sunset House and began assembling a broader retail portfolio. The acquisition of Emporium-Capwell in 1970 strengthened the company's position in the San Francisco Bay Area. Earlier, in 1969, Broadway-Hale had acquired Neiman Marcus and Walden Book Co. It subsequently purchased Bergdorf Goodman and Holt Renfrew in 1972, John Wanamaker in 1978, Thalhimers in the same year, and Contempo Casuals in 1979. The company also managed Weinstock's, a chain descended from the Sacramento retailer Weinstock, Lubin & Co. In 1974, the parent corporation became Carter Hawley Hale Stores, reflecting the influence of Edward Carter and Prentis Hale. Carter Hawley Hale's rapid expansion made it a significant American retailer, but its collection of banners proved difficult to manage profitably. It attempted to acquire Marshall Field in 1977 without success. During the late 1970s, the company reorganized regional operations, including the division of The Broadway into Southern California and Southwest units. Emporium and Capwell were brought together under the Emporium-Capwell identity in 1980. At the same time, the company began disposing of lower-market or noncore operations, including Sunset House's mall stores. The company became the subject of takeover attempts by The Limited in 1984 and 1986. To defend the business and reduce leverage, Carter Hawley Hale sold Waldenbooks to Kmart in 1984, Holt Renfrew to the Weston family in 1986, and John Wanamaker to Woodward & Lothrop in 1987. Its specialty businesses were separated into Neiman Marcus Group, with General Cinema acquiring majority ownership. Thalhimers was sold to May Department Stores in 1990. These transactions left the company more heavily dependent on its department-store operations. Competitive pressure intensified in California, especially from Nordstrom, while the costs and consequences of the earlier expansion and takeover defenses continued to weigh on the business. Carter Hawley Hale filed for Chapter 11 bankruptcy in 1991. After lengthy negotiations, the Zell/Chilmark Fund completed a reorganization in 1992 and acquired a 75 percent stake. The company emerged from bankruptcy in October of that year, and Philip Hawley retired. David Dworkin became chief executive and attempted to stabilize the company by remodeling stores and controlling cash outflows. Several Utah Weinstock's stores were closed in 1993, with their leases transferred to other retailers. In June 1994, shareholders approved the name Broadway Stores, Inc. The change was intended to mark a new phase, but the company remained financially fragile. On August 8, 1995, lenders refused to provide further credit required to pay suppliers and support inventory. Broadway Stores then agreed to be acquired by Federated Department Stores for $1.6 billion. Completion occurred on October 12, 1995. Federated dissolved the chain in 1996 and consolidated former Broadway, Emporium, and Weinstock's stores with Macy's West and Bullock's operations. Some duplicate locations were sold or closed, while several strategically important properties were redeveloped for Bloomingdale's. The former corporate office building in Los Angeles was later converted to another use, illustrating the broader disappearance of the company's institutional footprint.

• 1996

  Broadway Stores is dissolved

  [1]Broadway Storesen.wikipedia.org

  Federated consolidates the former banners into Macy's West and related operations.

• 1995

  Acquisition by Federated Department Stores

  [1]Broadway Storesen.wikipedia.org

  Federated completes its acquisition of Broadway Stores on October 12.

• 1994

  Name changes to Broadway Stores

  [1]Broadway Storesen.wikipedia.org

  Shareholders approve a new corporate name intended to represent a fresh start.

• 1992

  Reorganization and emergence from bankruptcy

  [1]Broadway Storesen.wikipedia.org

  The Zell/Chilmark Fund takes control, the company exits Chapter 11, and Hawley retires.

• 1991

  Chapter 11 bankruptcy

  [1]Broadway Storesen.wikipedia.org

  Carter Hawley Hale seeks bankruptcy protection amid financial and competitive difficulties.

• 1980

  Emporium and Capwell are unified

  [1]Broadway Storesen.wikipedia.org

  The two Bay Area banners are combined under the Emporium-Capwell name.

• 1978

  John Wanamaker and Thalhimers are added

  [1]Broadway Storesen.wikipedia.org

  The company broadens its national department-store footprint through acquisitions of the Philadelphia and Richmond-based chains.

• 1974

  The corporation becomes Carter Hawley Hale Stores

  [1]Broadway Storesen.wikipedia.org

  The parent company adopts the Carter Hawley Hale name.

• 1970

  Emporium-Capwell is acquired

  [1]Broadway Storesen.wikipedia.org

  Broadway-Hale acquires the San Francisco and Oakland-based department-store holding company.

• 1969

  Neiman Marcus and Walden Book Co. join the group

  [1]Broadway Storesen.wikipedia.org

  The company adds a luxury department-store chain and a bookseller with national growth potential.

• 1968

  Expansion into Phoenix

  [1]Broadway Storesen.wikipedia.org

  The Broadway enters Arizona, and Broadway-Hale also acquires Sunset House.

• 1961

  The Broadway reaches San Diego

  [1]Broadway Storesen.wikipedia.org

  The flagship department-store division expands south from Los Angeles into San Diego.

• 1950

  Broadway-Hale Stores is formed

  [1]Broadway Storesen.wikipedia.org

  The Broadway and Hale Bros. Stores merge, creating a larger California department-store holding company.

A multi-banner department-store holding company combining regional full-line department stores with national specialty and luxury retailers. Its original strength was Southern California department-store retail, while its later strategy emphasized geographic expansion and acquisition-led diversification.

• Department stores · 1896

  The Broadway

  The Broadway was the company's largest and best-known operating division. Founded in Los Angeles in 1896, it developed a broad full-line department-store assortment covering apparel, cosmetics, accessories, home goods, and general merchandise. The chain expanded through Southern California and into the Southwest, with separate regional divisions created in 1979 before later consolidation. It had 52 stores when Federated acquired the parent company.

• Department stores · 1980

  Emporium-Capwell

  Emporium-Capwell combined two long-established Bay Area department-store traditions: San Francisco's Emporium and Oakland's H.C. Capwell. Broadway-Hale acquired their parent company in 1970 and unified the banners in 1980. The division served the San Francisco Bay Area through full-line stores and retained a significant regional identity. Twenty-two stores remained at the time of the Federated acquisition.

• Department stores · 1949

  Weinstock's

  Weinstock's descended from Sacramento-based Weinstock, Lubin & Co., acquired by Hale Bros. in 1949. It operated as a distinct regional department-store banner within the broader group, although several stores were closed during the post-bankruptcy restructuring. Eight stores remained when Federated acquired Broadway Stores.

• Luxury department stores · 1969

  Neiman Marcus

  Neiman Marcus was acquired by Broadway-Hale in 1969 as part of the company's move into luxury and specialty retail. It was later separated, together with Bergdorf Goodman and Contempo Casuals, into Neiman Marcus Group. General Cinema became the majority owner of that specialty business in 1986.

• Book retail · 1969

  Waldenbooks

  Walden Book Co., commonly known as Waldenbooks, was acquired in 1969 and gave the holding company a national specialty-retail platform beyond department stores. The business was sold to Kmart in 1984 during the company's defensive restructuring.

• Luxury retail · 1972

  Holt Renfrew

  The Canadian luxury department-store chain Holt Renfrew joined the portfolio in 1972. Its international and premium positioning contrasted with the regional full-line department-store business. Carter Hawley Hale sold it to the Weston family in 1986.

• Department stores · 1978

  John Wanamaker

  The Philadelphia department-store chain John Wanamaker was acquired in 1978 for cash. It represented an effort to establish a presence in a major eastern retail market, but was later sold to Woodward & Lothrop in 1987 as Carter Hawley Hale reduced its portfolio.

• 1970The Broadway advertising platform

  Southern California

  The Broadway used the slogans "It's at the Broadway" in radio and television and "The Broadway is Southern California" across media. The campaign linked the chain to regional identity and promoted it as a defining Southern California retailer.

  Outcome. The slogans remained associated with the division through its final operating years.

  Source

• 1995

  Sale to Federated Department StoresM&A

  Background

  Lenders refused to provide additional credit needed to pay suppliers and maintain inventory, leaving Broadway Stores without a viable independent financing path.

  Action taken

  Broadway Stores agreed to sell itself to Federated Department Stores.

  Aftermath

  Federated completed the acquisition on October 12, 1995 and dissolved the Broadway Stores structure in 1996.

  Acquisition value. $1.6 billion (1995 acquisition)

  Source

• 1991

  Chapter 11 restructuringOther

  Background

  The company faced weak department-store performance, takeover-related financial strain, and rising competition from Nordstrom.

  Action taken

  Carter Hawley Hale filed for protection under Chapter 11 of the United States Bankruptcy Code.

  Aftermath

  A lengthy reorganization led to control by the Zell/Chilmark Fund and the company's emergence from bankruptcy in 1992.

  • Nordstrom — Nordstrom increased competitive pressure on the company's California department-store operations.

  Source

• 1986

  Separation of the specialty-store groupM&A

  Background

  A second takeover attempt by The Limited intensified pressure to simplify the corporation.

  Action taken

  Neiman Marcus, Bergdorf Goodman, and Contempo Casuals were separated into Neiman Marcus Group, while Holt Renfrew was sold to the Weston family.

  Aftermath

  General Cinema became majority owner of the specialty-store group, and Carter Hawley Hale narrowed its operating base.

  • The Limited — The Limited again attempted to acquire the company.
  • General Cinema — General Cinema assumed majority ownership of the separated Neiman Marcus Group.

  Source

• 1984

  Defensive asset sales after takeover pressureStrategy

  Background

  The Limited launched a takeover attempt while Carter Hawley Hale was struggling with a large and complex portfolio.

  Action taken

  The company sold Waldenbooks to Kmart and began separating or selling other specialty and regional businesses.

  Aftermath

  The company survived the takeover effort but became more dependent on its traditional department-store operations.

  • The Limited — The Limited pursued a takeover of Carter Hawley Hale.

  Source

• 1980

  Exit lower-market operationsStrategy

  Background

  Management concluded that parts of the portfolio serving lower-income markets were not aligned with the company's desired direction.

  Action taken

  Carter Hawley Hale sold the Sunset House mail-order operation while closing its mall-based novelty stores.

  Aftermath

  The move reduced exposure to a noncore business, but did not resolve the group's broader profitability problems.

  Source

1. 1Broadway Storesen.wikipedia.org