Arlan's was an American
discount store
A discount store or discounter offers a retail format in which products are sold at prices that are in principle lower than an actual or supposed "full retail price". Discounters rely on bulk purchasing and efficient distribution to keep down cost ...
chain.
Arlan's was founded in 1945 by William, Herbert, and Lester Palestine in
New Bedford, Massachusetts
New Bedford (Massachusett language, Massachusett: ) is a city in Bristol County, Massachusetts, Bristol County, Massachusetts. It is located on the Acushnet River in what is known as the South Coast (Massachusetts), South Coast region. Up throug ...
.
In 1963, executives tried to start talks with King's of Newton, Massachusetts, regarding a merger. These plans were briefly revived in 1966.
Arlan's opened its 50th store in
Cudahy, Wisconsin
Cudahy () is a city in Milwaukee County, Wisconsin, United States. The population was 18,204 at the 2020 census.
History
Originally known as the Buckhorn Settlement, it was renamed in the late 1800s when Patrick Cudahy purchased of land in the ...
in 1965. At this point, the chain had $174 million in revenue, and stores in 18 states from
Maine
Maine () is a state in the New England and Northeastern regions of the United States. It borders New Hampshire to the west, the Gulf of Maine to the southeast, and the Canadian provinces of New Brunswick and Quebec to the northeast and north ...
to
Colorado
Colorado (, other variants) is a state in the Mountain West subregion of the Western United States. It encompasses most of the Southern Rocky Mountains, as well as the northeastern portion of the Colorado Plateau and the western edge of t ...
.
It also owned 18 locations of a toy store called Play World. 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. 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
Target may refer to:
Physical items
* Shooting target, used in marksmanship training and various shooting sports
** Bullseye (target), the goal one for which one aims in many of these sports
** Aiming point, in field artillery, fi ...
.
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.
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
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
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.
In the Matter of Arlan's Department Stores, Inc., Debtor, 615 F.2d 925 (2d Cir. 1979)
''Justia.'' Retrieved March 2, 2018
References
{{Reflist
Defunct discount stores of the United States
Defunct companies based in Massachusetts
Defunct department stores based in Michigan
American companies established in 1945
Retail companies established in 1945
Retail companies disestablished in 1973