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Crowley's

From Alfawiki
Crowley Milner and Company
Company typePrivate
IndustryRetail (department stores)
FoundedJanuary 1, 1909; 117 years ago (1909-01-01) in Detroit, Michigan, United States
FounderJoseph J. Crowley, William Crowley, Daniel Crowley, William L. Milner
Defunct1999 (1999)
FateLiquidation; assets acquired by Value City and Schottenstein Stores
Headquarters
Detroit
,
United States
Area served
Detroit metropolitan area, Northeastern United States (after Steinbach acquisition)
Key people
Joseph J. Crowley (founder and president), Daniel J. Crowley (president)
ProductsUpscale apparel, gifts, full-service restaurant, grocery section
ParentOakland Holding Company (from 1985), later Schottenstein Stores and Value City (1999)

Crowley Milner and Company, widely recognized as Crowley's, was a department store chain established in Detroit, Michigan, in 1909. Following financial difficulties, the company ceased operations in 1999, with its assets subsequently liquidated.

For nearly eight decades, Crowley's flagship outlet, corporate headquarters, and warehouse spanned two blocks in downtown Detroit. The chain was a direct competitor to the J. L. Hudson Company and the Ernst Kern Company until Kern's closure in 1959. Both Crowley's and Hudson's gained renown for their intricate annual Christmas window displays. Due to a decline in downtown shopping activity, Crowley's closed its central Detroit location in July 1977; however, its New Center district store remained operational until 1999.

On March 11, 1995, Crowley's expanded by acquiring Steinbach, a retailer based in the northeastern United States. When Crowley's shut down in 1999, several of its stores were taken over by the discount retailer Value City. Three stores in the Detroit area were rebranded as Crowley's Value City until Value City itself ended operations in 2008.

History

In 1909, Joseph J. Crowley joined forces with his brothers William and Daniel, along with William L. Milner, to revive the struggling Detroit retailer Pardridge & Blackwell. Joseph Crowley had prior experience as a credit manager at Burnham Stoepel and had founded Crowley Brothers Wholesale Dry Goods Company in 1902. Milner was an important client through his W.L. Milner Department Store located in Toledo, Ohio.

Pardridge & Blackwell, founded in 1901, was on the brink of bankruptcy due to mismanagement and the economic downturn following the 1907 recession. An executive from Central Savings Bank proposed that Joseph Crowley take over management on the condition that his brothers and Milner partner with him, resulting in the creation of Crowley, Milner and Company.

The founders intended to build a top-tier retail establishment that mirrored Detroit's prosperous status at that time. Their inventory included upscale apparel and gifts imported from Europe, complemented by a full-service restaurant and grocery section. Within ten years, the business expanded its premises to become Michigan’s largest department store.

The original Pardridge & Blackwell Building covered half a city block and consisted of six floors featuring expansive windows bordered by glazed brick and terra cotta columns. Crowley, Milner enlarged this structure by adding two additional floors and extending the building eastward. In 1920, they constructed an eleven-story "home store" annex initially connected via an underground tunnel; by 1925, a sophisticated five-story bridge linked the two buildings above street level. The entrances were distinguished by grand arches and pediments; wooden escalators remained in use until the building's demolition in 1977.

Following Milner’s death in 1923, the company encountered difficulties losing both its president and merchandising leader; his heirs divested his 42% ownership stake. Joseph Crowley assumed the presidency but control of the company was affected for several years due to the change in shareholding.

The Great Depression had a profound effect on Crowley's revenue, which plummeted from $39 million in 1928 to $10 million by 1929. After Joseph Crowley's passing in 1937, his widow repurchased shares from Milner's heirs to return majority ownership to the Crowley family. Daniel J. Crowley, Joseph’s son, then took over as president and steered the company toward recovery.

Expansion

Starting in 1959, Crowley’s evolved from a single retail outlet into a regional chain, establishing stores in Detroit suburbs such as Dearborn, northwest Detroit, Livonia, and Macomb Mall by 1964. This suburban growth was accompanied by a reduction in its downtown presence, which by 1960 had consolidated space leased to the Veteran's Administration.

In 1972, Crowley’s expanded further by acquiring the Demery's chain, gaining additional locations in Detroit's New Center area and the suburbs of Birmingham and Farmington Hills. The company continued its expansion with new stores opening in Sterling Heights at Lakeside Mall (1975), Warren’s Universal Mall (1980), Ann Arbor’s Arborland Center (1980), Tel-Twelve Mall (1985), Westland (1986), and Burton’s Courtland Center (1986).

Due to declining sales, the downtown flagship store closed in 1977. This was followed by the shutdown of office and warehouse facilities as well as the Ann Arbor store in 1983. Subsequently, company offices were relocated to Lafayette Boulevard until the business entered liquidation. Despite its limited size, the Grand River-Greenfield store remained one of the stronger performers but declined an offer for renovation in 1987.

By 1985, majority ownership of Crowley’s had transferred from the founding family to Oakland Holding Company.

Decline

In 1990, Crowley’s introduced a specialized men’s store prototype adjacent to its Farmington location, focusing on business attire as a strategic countermeasure against competitors like MainStreet (which later became Kohl’s) and Mervyns. The retailer pivoted toward upscale labels such as Calvin Klein and Ralph Lauren to attract more affluent customers, though this shift distanced some of its traditional clientele.

The successful men’s store-within-a-store concept expanded due to strong sales performance. Additionally, a "Frequent Buyer" loyalty program was launched. Despite these initiatives, overall sales declined by nearly $10 million between 1991 and 1992.

In March 1991, Crowley’s actively sought a merger partner to facilitate growth through acquisition, marking a strategic shift.

A women's clothing concept store opened in Lansing in late 1992 but failed due to limited brand recognition and poor location choice.

By 1993, after obtaining a revolving credit facility from Schottenstein Stores, Crowley’s resumed payments to creditors and implemented operational improvements including new personnel management software, closure of the Westland store, and discontinuation of the Frequent Buyer program. These actions contributed to increased sales and resulted in the company's first profitable quarter in almost five years.

Financial results improved during 1994–95 with sales reaching $109.9 million. The company announced a two-for-one stock split alongside launching a proprietary credit card and rebranding itself as "Detroit's Own Department Store."

On November 21, 1995, Crowley’s acquired the Steinbach chain from the Schottenstein family, adding 24 stores across the Northeast. The plan was to retain approximately two-thirds of these locations.

Expansion efforts included plans for a Novi store in 1996 and acquisition of Winkelman’s women’s fashion chain in 1998; both initiatives ultimately failed. However, Crowley’s did expand into Winkelman’s Tel-Twelve Mall location with separate men’s and women’s stores.

On June 1, 1997, the New Center One Building store was enlarged by 7,500 square feet—its most profitable location per square foot—although the company reported a $4 million loss for the first quarter due to Steinbach acquisition expenses. Losses increased to $5.2 million in early 1998 amid delays reopening its largest Macomb Mall store.

Facing escalating financial challenges, Crowley’s began downsizing operations in 1997. The company lost its Birmingham lease acquired through Demery's because of redevelopment plans.

On January 4, 1999, control of Crowley’s shifted to Schottenstein Stores and Value City through a stock exchange; trading was suspended two weeks later. By February 8, Crowley’s filed for Chapter 11 bankruptcy protection and announced liquidation of its remaining nine stores along with sixteen Steinbach locations. Additionally, eight other sites were sold to Value City.

Several mall locations—including Livonia Mall, Universal Mall, Macomb Mall, and Westborn Mall—were sold to Value City and operated under the name Crowley's Value City; Westborn was eventually demolished for a Kroger supermarket. The Lakeside Mall location was sold to Target for Hudson's expansion. Four Steinbach stores in New Jersey were also sold to Value City.

Further reading

  • Corporate History of Crowley, Milner & Co., Detroit: Crowley, Milner & Co., 1997
  • "Crowley Plans Additional Outlet at Tel-Twelve," Crain's Detroit Business, April 30, 1990, p. 2.
  • Crump, Constance, "Crowley's Objectives: Profitability and Merger Prospects," Crain's Detroit Business, June 15, 1992, p. 3
  • "Signs of Progress?: Crowley Leadership Anticipates Profit Recovery Through Strategic Focus," Crain's Detroit Business, February 25, 1991, p. 1
  • Wilson, Melinda, "External Investors Boost Their Holdings in Crowley's," Crain's Detroit Business, March 19, 1990, p. 1.
  • International Directory of Company Histories, Volume 19. St. James Press, 1998.