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Associated Dry Goods

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Associated Dry Goods Corp
IndustryRetailing
DefunctTemplate:End date and age
FateAcquisition
SuccessorThe May Company
Area served
United States

Associated Dry Goods Corporation (ADG) was a department store group that merged with May Department Stores in 1986. Established in 1916, it originated as a coalition of independent retailers known as American Dry Goods, headquartered in New York City.

History

The origins trace back to Henry Siegel, founder of the Chicago-based department store Siegel, Cooper & Co., who secured funding from Goldman Sachs for a New York City location during the early 1900s. Although Siegel's venture did not succeed, the remaining assets were combined with John Claflin’s retail holdings under H.B. Claflin & Company, along with notable stores such as Lord & Taylor, Stewart & Co., Hengerer's, and J. N. Adam & Co., backed by financing from J. P. Morgan & Company. Some other outlets were divested to Mercantile Stores Co.

Throughout the 1950s to the 1970s, ADG steadily grew through acquisitions. During the 1970s, they launched a new department store chain in St. Petersburg, Florida, called Robinson's of Florida. Nevertheless, ADG was primarily recognized for its prestigious New York City-based division, Lord & Taylor, which operated more than 84 stores nationwide and represented its largest and most lucrative segment.

Major growth

In the early to mid-1980s, ADG undertook a strategic restructuring to concentrate on markets with strong growth potential. Several underperforming department store chains were either sold or closed. In 1981, Buffalo’s Hengerer's was consolidated into Rochester’s Sibley's. The year 1983 saw Cincinnati’s H.& S. Pogue Co. (operating five stores) integrated into Indianapolis-based L. S. Ayres. That same year, the West Virginia division The Diamond (two locations) was sold to Stone & Thomas. In 1984, the St. Louis-based chain Stix Baer & Fuller (12 stores) was acquired by Dillard Department Stores. Also in 1984, Baltimore’s Stewart & Company was merged into ADG’s discount division, Caldor. The Minneapolis-based Powers Dry Goods Company (nine stores) was sold to Allied Stores’ subsidiary, The Donaldson Co., in 1985. Early in 1986, the Louisville-based division Stewart Dry Goods was merged into the Indianapolis operations of L. S. Ayres & Co.

Founding stores


Subsequent Acquisitions

Divestitures, Closures, and Consolidations of Divisions

Before merging with the May Department Stores in 1986, several department store branches were either sold or shut down:

Acquisition by May Department Stores

In October 1986, ADG became part of the portfolio of the May Department Stores Company through a merger valued at approximately US$2.2 billion—the largest retail acquisition at that time. Following this acquisition, May rebranded or consolidated most former ADG department stores under its own regional banners, except for the upscale retailer Lord & Taylor, which had long been recognized as a premier fashion leader and regarded as Associated’s “crown jewel.” It was widely believed that May’s primary motivation for acquiring ADG was to gain control over this prestigious Lord & Taylor division.

At the conclusion of its independent operations, ADG managed over 155 department stores alongside specialty chains such as the upscale discount retailer Caldor and off-price specialist Loehmann's.

Timeline of May Company Rebranding and Divestiture of Former ADG Units

Post-merger with ADG, the May Company proceeded to either sell or integrate each former ADG division into its regional brand structure:

  • 1986 – Due to potential antitrust concerns from the City of Pittsburgh, the Joseph Horne Co. was sold to a local investor group
  • 1987 – The Denver-based Denver Dry Goods Co. was rebranded as May D&F
  • 1987 – The Florida chain, Robinson's of Florida, was sold to Maison Blanche/Goudchaux Co., Baton Rouge, Louisiana; subsequently operated under the Maison Blanche name
  • 1988 – The off-price retailer Loehmann's was sold to an investor consortium led by Spanish firm Sefinco Ltd., along with Sprout Group (a branch of Donaldson, Lufkin & Jenrette)
  • 1989 – The Arizona-based chain Goldwater's was consolidated into J.W. Robinson's, May Company California, and May D&F divisions
  • 1989 – The New Jersey retailer Hahne & Co. was converted into a branch of Lord & Taylor
  • 1990 – The discount chain Caldor underwent a leveraged buyout sale
  • 1991 – Indianapolis-based L. S. Ayres merged with Famous-Barr but retained its original name on storefronts
  • 1986 – Cincinnati’s former H.& S Pogue store (converted to L.S. Ayres in 1983) was sold to Hess's and JC Penney
  • 1987 – Louisville’s former Stewart Dry Goods (converted to L.S. Ayres in 1984) was sold to Hess's
  • 1992 – The Rochester-based chain Sibley's was rebranded as Kaufmann's
  • 1992 – J.W. Robinson's merged with May Company California forming Robinsons-May

By 2021, the last remaining legacy nameplate from this lineage—Lord & Taylor—transitioned exclusively to an online retail format.

History by nameplate

The Denver Dry Goods Company, based in Denver, Colorado, was purchased by ADG in 1966. This segment included a dozen stores throughout Colorado. Following the May/ADG merger in 1986, the division was mostly dismantled and its remaining outlets were integrated into May D&F (May Daniels & Fischer) during 1987. May D&F absorbed three of The Denver Dry Goods Co.'s stores. In 1989, May D&F also took over ADG's former Goldwater's location in Albuquerque. By 1993, May D&F had merged into May's Foley's division headquartered in Houston. After Federated acquired May, it was declared that most Foley's stores—including those originating from Denver Dry Goods and May D&F—would either be rebranded as Macy's or sold.

The Diamond, located in Charleston, West Virginia, was a modest two-store division operating within West Virginia. ADG divested this division in 1983 to Stone & Thomas due to its limited expansion opportunities.

Goldwaters, initially established in Gila City, Arizona in 1860 and relocated to Phoenix in 1872, became part of Associated Dry Goods in 1963. The chain operated nine stores across Arizona, New Mexico, and Nevada. As a result of the May/ADG merger in 1986, Goldwaters became a May division. In 1989, May dissolved the division and distributed its stores among three other May divisions. Various locations were absorbed by May D&F, May Company California, and J. W. Robinson's, with Tucson-area outlets sold to Dillard's Department Stores.

The H.& S. Pogue Co., from Cincinnati, Ohio, was acquired by Associated Dry Goods Corp. in 1962 and merged into L. S. Ayres & Co. of Indianapolis in 1984. Post the May/ADG merger, its branch stores were rapidly closed or sold to Hess's and JCPenney during 1987 and 1988, while the downtown flagship store was demolished.

Hahne & Co., based in Newark, New Jersey, joined the American Dry Goods conglomerate (later Associated) in 1916. After moving its headquarters from downtown Newark to a nearby strip mall close to its Woodbridge store, there were plans during the mid-1980s to relocate to a new flagship store at the former Gimbels location in Westfield Garden State Plaza; however, Bergen County’s Sunday operating laws prevented this move. Consequently, all nine stores were closed by May in 1989. Six of these were absorbed by Lord & Taylor, while the large Westfield Garden State Plaza location was acquired by Nordstrom.

Hengerer's (The William Hengerer Co.) of Buffalo, New York, founded as Barnes, Bancroft & Co. in 1874 and renamed Hengerer’s in 1895, was purchased by J. N. Adam & Co. in 1905. It became part of Associated Dry Goods Corp. upon its formation in 1916. In 1981, ADG merged Hengerer's into Sibley, Lindsay & Curr Co., based in Rochester. Following the May/ADG merger, Sibley's was consolidated into May’s Kaufmann's division by 1992. After Federated acquired May, most Kaufmann's locations—including former Hengerer's sites—were either converted to Macy's or sold; all former Hengerer's stores transitioned to Macy's by September 2006.

Joseph Horne Co., headquartered in Pittsburgh, Pennsylvania, served as Pittsburgh’s traditional upscale department store rivaling Kaufmann's (a May division). Acquired by Associated Dry Goods in 1972 and subsequently by May through the October 1986 merger with ADG, it was quickly sold off due to antitrust concerns and legal challenges from Pittsburgh city authorities within two months of the merger to an investor group. After several years under private ownership, an attempted acquisition by Dillard’s to merge with their Higbee’s chain failed to finalize. Ultimately, Joseph Horne Co.'s assets were divided: three Ohio stores went to Dillard’s in 1992 while Federated Department Stores’ Lazarus division acquired the remaining ten Pennsylvania locations in 1995. Federated later merged all these divisions into Macy's.

J. N. Adam & Co., founded in Buffalo in 1881, acquired Hengerer's later that same year before both companies were sold to H.B. Claflin & Co., which eventually became United Dry Goods Companies. It was part of Associated Dry Goods Corp.’s portfolio from its inception but ceased operations in 1960.

L. S. Ayres & Co,, based out of Indianapolis, Indiana, joined Associated Dry Goods Corp.’s fold through acquisition in 1972. It absorbed Cincinnati’s Pogue’s division in 1984 and Louisville’s Stewart’s chain a year later in 1985, growing to encompass twenty-five stores across Indiana, Ohio, and Kentucky. Following the May/ADG merger of 1986, underperforming outlets from these former chains were promptly divested by May between 1987 and 1988. The company name was shortened simply to L.S. Ayres and operationally merged with Famous-Barr by 1991—though it retained its original branding—while closing its Indianapolis flagship store along with three other low-performing locations at that time. After Federated took over May, it declared that most Famous-Barr and L.S. Ayres stores would be either converted into Macy’s or sold.

Lord & Taylor, established in New York City in 1826, was among the founding members of American Dry Goods (later Associated Dry Goods) at its formation in 1916 and became part of May during the 1986 merger with ADG. Under CEO Joseph E. Brooks during the 1970s, Lord & Taylor aggressively expanded into Texas, Illinois, Michigan, and opened eleven stores rapidly across South Florida during the early ‘80s; however, following the oil market downturn and subsequent mergers around 1989–1990, it retreated somewhat from Texas and southern Florida markets. Upon acquisition by May, several former ADG divisions including Hahne’s (New Jersey) and some John Wanamaker locations (Philadelphia) were consolidated under Lord & Taylor branding; notably from 1997 until 2006 Lord & Taylor operated out of Wanamaker’s landmark downtown Philadelphia store location as well. Throughout the ‘90s and early ‘00s under CEO Marshall Hilsberg’s leadership, Lord & Taylor pursued national expansion reaching as far west as Las Vegas with up to eighty-six stores at its peak.

Following Federated Department Stores’ purchase of May in June 2005, CEO Terry Lundgren announced on January 12th, 2006 that Lord & Taylor would be sold before year-end. On June 22nd that year it was revealed that NRDC Equity Partners planned to acquire Lord & Taylor for $1.2 billion (approximately $ inflation-adjusted). The transaction completed four months later in October 2006. After NRDC acquired Canadian retailer Hudson's Bay Company in 2008 they expressed intentions for international expansion of Lord & Taylor stores as well. In November 2019 clothing rental company Le Tote purchased Lord & Taylor.[1] However on August 27th, 2020 it was announced that after filing for bankruptcy earlier that month on August 2nd,[2] Lord & Taylor would cease operations entirely just shy of its bicentennial anniversary.

The Powers Dry Goods Co., headquartered in Minneapolis, Minnesota, operated seven stores before being acquired by The Donaldson Company (a Minneapolis-based unit of Allied Stores Corp.) in 1985—strengthening Donaldson's position against dominant competitor Dayton's locally. After Campeau Corp.’s takeover of Allied Stores Corp., Donaldson's was purchased by Chicago-based Carson Pirie Scott & Co., which rebranded Donaldson’s outlets under its own nameplate starting in late ’80s; Carson Pirie Scott itself was bought by Milwaukee-based P.A. Bergner & Co.. Bergner filed for bankruptcy protection by ’91; Carson’s then sold former Donaldson/Powers Minneapolis locations to Dayton Hudson Corp., parent company of Dayton’s department stores—in ’95 many reopened as moderate-priced Mervyn's outlets designed to limit competition within Twin Cities market stronghold. When Dayton Hudson successor Marshall Field’s was purchased by May Company in ’04 it also agreed to acquire these former Donaldson/Powers sites which Mervyn’s promptly shuttered leaving property disposition responsibilities to May.

J.W. Robinson's, a Los Angeles-based division since joining Associated Dry Goods Corporation in ’57 with twenty-one California locations at acquisition time by May during the October ’86 merger with ADG; historically an upscale department store operating alongside May Company California for several years before assuming control over Goldwaters' Phoenix operations starting ’89 post-merger with ADG assets there; In ’92 as part of divisional streamlining efforts Robinson’s merged with May Company California forming Robinsons-May headquartered out of Los Angeles; following Federated acquisition of May it was announced most Robinsons-May outlets would be either converted into Macy’s or sold off.

Robinson's of Florida, located primarily around St Petersburg and founded during the ’70s as an effort by ADG to replicate J.W Robinson's success on Florida Gulf Coast growth markets; rather than invest further during Florida market stagnation after acquisition by May during ’86 merger with ADG it divested seven stores next year selling them to Maison Blanche/Gouchaux Co., Baton Rouge who operated them under Maison Blanche brand; majority later sold off again to Dillard Department Stores during ’91.

'The Sibley, Lindsay & Curr Co., based out of Rochester and Syracuse New York since founding back in ’68 became part of Associated Dry Goods Corporation from ’61 onward before acquisition by May during ’86 merger with ADG; operated fourteen New York locations including absorption of William Hengerer Co., Buffalo outlet since ’81; merged into Kaufmann's division during ’92 consolidation efforts at May; after Federated purchase most Kaufmann's including former Sibley's sites transitioned either into Macy's or were sold off.

The Stewart Dry Goods Co., headquartered Louisville Kentucky with seven outlets across Kentucky and Indiana merged into L.S Ayres Indianapolis operation during ’85 prior to dissolution post-May/ADG merger when remaining locations closed or sold off mostly to Hess’s during ’87.

Stewart & Company, Baltimore Maryland-based division closed down entirely by ADG during ’82 with all units converted into Caldor discount stores over following eighteen months.

Stix Baer & Fuller, operating primarily St Louis and Kansas City Missouri locations was sold off after sustained losses throughout early ‘80s when Dillard Department Stores acquired twelve Stix Baer outlets for roughly $93 million; St Louis downtown flagship initially operated as regular Dillard’s then clearance center before final closure.


Discount and Off-Price Retail Chains Owned by ADG

Loehmann's – based in the Bronx, New York. ADG acquired Loehmann's in 1983, which operated 81 outlets across 28 states. This purchase marked a significant move for ADG into the fast-expanding off-price retail sector. Following the 1986 merger between May and ADG, May divested this division shortly thereafter.

Caldor – headquartered in Norwalk, Connecticut. Caldor was positioned as an upscale discount chain with 109 stores located throughout New England and the Mid-Atlantic region. After May's merger with ADG in 1986, this division was quickly sold off. Caldor eventually filed for bankruptcy and ceased operations in 1999.

Additional Details Regarding ADG and May Department Stores

For an in-depth overview of May Department Stores and its various current and former subsidiaries, refer to the May Department Stores page. Related entries include Federated Department Stores, Lord & Taylor, and Dillard's Department Stores.

References

  1. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  2. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  • Rizzo, Michael F., Nine Nine Eight: The Glory Days of Buffalo Shopping, 2007, (Lulu Enterprises, Inc.: Morrisville, N.C.)

External links

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