Fortunoff

Fortunoff is a New York-based retailer of home, jewelry and furniture stores. The original Fortunoff store was in Brooklyn, New York, founded in 1922 by Max and Clara Fortunoff.

The Fortunoff and Mayrock families, descendants of the founders, owned 100% of the company until November 2004, when large interests in the company were purchased by outside investors Trimaran Capital Partners and the Kier Group. [http://www.trimarancapital.com/buoyouts112904.pdf] [http://www.jckgroup.com/article/CA481050/jck?industry=Retail+Roundup&industryid=1819] However, several members of the founding family still remain involved in the management and operation of the company.

The sale, which originally was to have closed in December 2004, finally closed in July 2005. [http://www.privateequityweek.com/pew/freearticles/1110466181587.html] The "New York Post" claimed in an article that the delay was due to the buyers wanting a reduction in the purchase price due to a challenging retail environment.

Fortunoff has struggled financially in recent years and on February 4 2008, filed for Chapter 11 bankruptcy along with accepting the $100 million sale to NRDC Equity Partners, [cite web| url=http://www.newsday.com/sports/football/giants/ny-bzfort0205,0,6671122.story |title="Fortunoff files bankruptcy, agrees to $100M sale to Lord & Taylor owner" |accessdate=2008-02-04 |publisher="Newsday"] the parent company of the longtime New York retailer, Lord & Taylor. The sale is estimated to include Fortunoff's debt of approximately $60 million. [cite web | url=http://www.nytimes.com/2008/01/31/business/31shopX.html?_r=1&oref=slogin |title="Ailing Fortunoff Attracts a Suitor"|accessdate=2008-01-31 |publisher="The New York Times"] Industry analysts speculate a likely result of a buyout by NRDC would bring Fortunoff-branded jewelry and home furnishings departments into most if not all of the 47 current Lord & Taylor locations. This list includes the department store's flagship Fifth Avenue location, where such holdings could exceed 100,000 square feet in sales floor area —approximately one sixth of the total area of the store. Since the completion of the NRDC deal, about 10% (200) of Fortunoff associates were laid-off, with most given a modest severance package.

The flagship store at Westbury, Long Island, has catered to its loyal customers since 1964, where it anchors The Source Mall; the mall was built around Fortunoff during the 1990s. The Source is viewed by some to offer a more manageable shopping destination than its "mega-mall" peers and has restaurant-destinations such as The Cheesecake Factory, P. F. Chang's China Bistro, Ahans Shish-Kebob and Cold Stone Creamery. The mall is named for Fortunoff's "The Source" advertising trademark of more than 25 years made famous by Lauren Bacall.

Today, Fortunoff has four full-line stores — two in New York, and two in New Jersey. In addition, Fortunoff also operates 16 specialty stores. Jewelry and fine gifts are offered at the chain's shops on 57th Street in Manhattan and at Paramus Park Mall in Paramus, New Jersey, while indoor and outdoor furniture are the focus of another 14 stores throughout New York, New Jersey, Connecticut and Pennsylvania. A clearance center is also operated at Garden City, New York. The chain overall brings in annual sales revenue around $450 million.

In July 2008, NRDC Equity Partners, purchased Canada's 338 year old retailer, the Hudson's Bay Company. The new combined company will be called Hudson's Bay Trading Company, and will comprise of Lord and Taylor, Fortunoff, Creative Design Studios, and the HBC's divisions: The Bay, Zellers, Home Outfitters, and Fields (department store). Designer Depot was recently sold in 2008 for underachieving sales performance. [http://www.financialpost.com/story.html?id=428721] This merger will make the new company a multinational corporation.

Locations

Full-line stores
*Westbury, NY - The Source Mall ("opened in 1964 - flagship location")
*White Plains, NY - formerly Saks 5th Avenue
*Wayne, NJ - opened as S. Klein, later converted to Korvette's
*Woodbridge, NJ - Woodbridge Center ("opened in 1987, formerly Hahne's)"

Jewelry and gift stores
*New York, NY - West 57th Street
*Paramus, NJ - Paramus Park Mall

There are also several small furniture stores located through-out New York and New Jersey.

References

External links

* [http://www.fortunoff.com/ Company website]