Arlan's was an American

discount store Discount stores offer 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 costs. Types (Uni ...

chain. Arlan's was founded in 1945 by William, Herbert, and Lester Palestine in

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. 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

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, in 1965. At this point, the chain had $174 million in revenue, and stores in 18 states from

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. 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. 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

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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)
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'' Retrieved March 2, 2018

References

{{Reflist Defunct discount stores of the United States Defunct companies based in Massachusetts Defunct department stores based in Massachusetts American companies established in 1945 Retail companies established in 1945 Retail companies disestablished in 1973