Alexander's

Alexander's, Inc.

Company type	Public company
Industry	Real estate investment trust, formerly retail department stores
Founded	1928
Founder	George Farkas, Louis Schwadron
Fate	Filed bankruptcy in 1992; ceased retail operations; continues as a real estate investment trust
Headquarters	New York metropolitan area , United States
Area served	New York metropolitan area
Key people	Steven Roth (Chairman of Vornado Realty Trust, controlling interest)
Products	Real estate properties (7 properties), formerly department stores
Owner	Vornado Realty Trust (majority control)

Overview

Alexander's, Inc. operates as a real estate investment trust with ownership of seven properties situated within the New York metropolitan area, including the notable 731 Lexington Avenue, which serves as the headquarters for Bloomberg L.P.. The company is predominantly controlled by Vornado Realty Trust. Established in 1928 by George Farkas and Louis Schwadron, Alexander's has evolved significantly since its inception.

Historical Background

Originally, Alexander's functioned as a department store chain, expanding to a peak of 16 locations by 1981. However, the company faced financial difficulties leading to a bankruptcy filing in 1992. At that time, six out of the eleven remaining stores operated in properties owned by Alexander's itself. Among its prominent retail sites was a flagship store occupying an entire city block bordered by East 58th and 59th Streets, Lexington Avenue, and Third Avenue in Manhattan—the current site of 731 Lexington Avenue. Additional stores included one within The Mall at the World Trade Center, an anchor retail location on Fordham Road in The Bronx, and a store in Paramus, New Jersey distinguished by one of the largest murals worldwide.

History

In 1928, George Farkas, originally from Brooklyn, launched a retail store on Third Avenue in the Bronx with an initial investment of $7,500 (~$Template:Format price in Template:Inflation/year). He named the business after his late father, Alexander. Targeting affluent members of the middle class, the store specialized in discounted designer clothing alongside premium private label merchandise. At one point, its marketing catchphrase was "You'll find Alexander's has what you're looking for; how lucky can you get?!"

Despite the economic hardships of the Great Depression, the company prospered and expanded by opening a new outlet at the intersection of Fordham Road and the Grand Concourse in The Bronx in 1933. During its peak in the 1930s, this location gained a reputation for offering exceptional discount deals and achieved higher sales per square foot than any other U.S. retailer.

George Farkas was recognized for his expertise in selecting store locations and preferred acquiring property ownership rather than leasing.

In February 1959, the retailer inaugurated a new branch in Rego Park, Queens.

By 1963, Alexander's established its flagship store on Manhattan’s 59th Street after purchasing the site from an entity linked to Joseph P. Kennedy Sr. at what was considered a premium price of $125 (~$Template:Format price in Template:Inflation/year) per square foot.

Alexander's transitioned to a public company through an initial public offering in December 1968, successfully raising $41.17 million (~$Template:Format price in Template:Inflation/year). This move was partly aimed at fending off a potential acquisition by rival E. J. Korvette. That same year, founder George Farkas stepped down due to health concerns, with his son Alexander S. Farkas assuming the role of CEO.

Throughout the 1970s, Alexander's experienced customer attrition as shoppers gravitated toward larger retailers such as Macy's and Bloomingdale's, as well as discount chains like Kmart.

On October 15, 1971, Alexander's launched its tenth retail location within the Roosevelt Field shopping center.

Following the completion of The Mall at the World Trade Center in 1974, Alexander's served as an anchor store. This outlet occupied approximately one-sixth of the mall’s total area of 500,000 square feet—the largest shopping mall in New York City—and was situated beneath 4 World Trade Center, just east of the south tower.

In 1980, following a contested proxy battle, control of Alexander's shifted to Interstate Properties under the leadership of Steven Roth, who aimed to enhance the value of the company's real estate assets.

Management sought to diversify beyond leisure wear in 1981.

By 1984, at Interstate Properties’ behest—then holding a 13% equity stake—Alexander Farkas resigned as CEO and was succeeded by his brother Robin (1933–2018).

In 1986, approximately one-fifth ownership of the company was acquired by Donald Trump.

Business closure and real estate activities

The final year in which the company recorded profits from its retail division was 1987.

By 1988, both Interstate and Trump had increased their ownership stakes to 27% each. However, Trump used his shares as collateral for a personal loan from Citibank, and in 1991, he was compelled to transfer his holdings to the lender as repayment.

In 1992, under pressure from Roth and other creditors, the company filed for bankruptcy and ceased operations at all 11 of its stores on May 15, resulting in the termination of 5,000 employees. The bankruptcy filing was also influenced by a put option held by the Gruss family, which allowed them to sell their 18% stake in the partnership owning the 59th Street location back to Alexander's for $35 million—a sum the company was unable to meet.

The company successfully emerged from bankruptcy protection in 1993. This turnaround was driven by an appreciation in its real estate assets combined with a reduction in liabilities, causing its stock price to surge from $8.50 per share prior to bankruptcy to $57 per share within a year.

In 1995, Vornado Realty Trust acquired Citicorp’s stake (previously owned by Donald Trump) for $54.8 million.

Later, in November 2012, the company divested the Kings Plaza mall in Brooklyn, selling it to Macerich for $751 million. The proceeds were then distributed to shareholders as a dividend of $122 per share.

Mural at the Paramus Location

Among the most notable features linked to Alexander’s was an abstract glass mural created with enamel by Polish artist Stefan Knapp, which adorned the exterior of the Alexander’s store situated across from Garden State Plaza in Paramus, New Jersey. Positioned on the building’s wall facing New Jersey Route 4, this mural remained intact until the structure was demolished in 1998.

Initially, George Farkas had approached renowned artist Salvador Dalí to produce a mural for the Paramus store, and they had reached a contractual agreement. However, during a trip abroad, Farkas encountered a mural by Knapp at London’s Heathrow Airport and subsequently commissioned Knapp to create a mural as well. Dalí insisted on executing the piece himself, envisioning giraffes with drawers hanging from their necks extending over the street, and was willing to allow Knapp to paint only the giraffes. In response, Farkas awarded the entire commission to Knapp but compensated Dalí for his conceptual contribution. Knapp’s design depicted a world map inspired by his perspective as a Royal Air Force pilot after his release from a Soviet prison camp.

Completed in 1963, the mural comprised 280 panels, measuring 200 feet in length and 50 feet in height, making it the largest of its kind globally at that time and weighing more than 250 tons. Impressed by Knapp’s work, Farkas commissioned him to create additional murals for Alexander’s stores in Valley Stream and White Plains.

Following the store’s closure in 1992, the building remained vacant. In 1996, Steven Roth, chairman of Vornado Realty Trust, announced plans to redevelop the site into a shopping center anchored by Ikea. Will Roseman, mayor of nearby Carlstadt, New Jersey and board member of the Bergen Museum of Art & Science, reached out to Roth to advocate for preserving the mural. After an appraisal by Sotheby's, the mural was donated to the Bergen Museum of Art & Science and stored in a garage located in Carlstadt.

In June 2015, portions of the mural were exhibited at the Art Factory in Paterson, New Jersey. However, Roseman withheld twenty sections due to concerns that the Art Factory might sell them. The displayed panels were arranged thematically in rows.

In September 2021, representatives from Valley Health System along with Paramus’ mayor announced plans to install fifty segments of the mural throughout various locations on the campus of the new Valley Hospital under construction in Paramus, with an anticipated opening date in 2023.

External links

• History of Alexanders Company
• Obituary: George Farkas / New York Times / April 5, 1980
• Template:Finance links