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: ) is a city in Bristol County, Massachusetts. It is located on the Acushnet River in what is known as the South Coast region. Up through the 17th century, the area was the territory of the Wampanoag Native American p ...

. 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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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 the ...

. 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

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. 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