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Crown Books

From Alfawiki
Crown Books
Company typePublic
IndustryBookselling
Founded1977
FounderRobert Haft
FateBankruptcy and liquidation in 2001
Headquarters
Largo (Lake Arbor), Maryland
,
United States
Area served
United States (Washington, D.C. metro area; Baltimore; Chicago; Philadelphia; Houston; Los Angeles; San Francisco; Sacramento; Seattle; Portland)
Key people
Robert Haft (founder), Glenn E. Hemmerle (president and CEO 1992–1994), Anna Currence (CEO late 1990s), Charlie Cumello (CEO circa 2000)
ProductsBooks, greeting cards, games, computer software, gift items
Number of employees
Not specified
ParentDart Group (until breakup)

Crown Books was a bookselling company based in Prince George's County, Maryland, utilizing a Largo postal address. Established in 1977 within the Washington, D.C., metro area by Robert Haft, Crown Books operated independently from the publishing entity Crown Books (publisher), although it did stock titles from that publisher.

Origins and Expansion

The inception of Crown Books took place in 1977 in the Washington, D.C. metropolitan region, initiated by Robert Haft with financial backing from his father, businessman Herbert Haft. The bookstore chain functioned under the Dart Group umbrella (unrelated to the UK-based Dart Group), which also encompassed businesses such as Trak Auto, Shoppers Food Warehouse, Total Beverage, Dart Drug, and Combined Properties. Renowned for its competitive pricing, Crown Books gained recognition throughout the 1980s and early 1990s for its innovative marketing efforts—for example, advertisements featuring Robert Haft perched atop towering piles of books with slogans like "Books Cost Too Much, That's Why I Opened Crown Books. Now You'll Never Pay Full Price Again!" In its early operational phase, day-to-day management was led by Jose Gonzales (Vice President of Operations) alongside Jeanne Herrick (Vice President of Merchandising). When expansion plans targeted other regions, this leadership model was replicated for the California market through Steve Young and Miriam Bass. Subsequently, entry into the Chicago market was overseen by Richard Lowe and Rhonda Branch.Template:Fix/category[citation needed]

Crown Books experienced swift growth, evolving from a single outlet in 1977 to a regional network of 196 stores by 1993. Positioned closely behind Borders, it was on track to become the second-largest bookstore chain nationwide. The company's foundation rested on Classic Crown Books outlets, which offered customers between 2,000 and 3,000 square feet (280 m2) of book selections since its inception. However, beginning in 1990, these smaller stores were progressively replaced by larger superstore formats designed to compete more effectively. These Super Crown Books locations featured inventory of up to 80,000 titles—approximately tenfold that of Classic Crown stores—and expanded their product range to include greeting cards, games, computer software, and various gift items. Retail space for these superstores ranged from 12,000 to 35,000 square feet (3,300 m2).Template:Fix/category[citation needed]

Robert Haft demonstrated strategic vision with the launch of Crown Software in 1986; however, his involvement in side projects delayed Crown’s entry into the superstore arena already being pursued by competitors Barnes & Noble and Borders.Template:Fix/category[citation needed]

By 1993, Crown Books ranked as the third-largest bookstore chain in the United States after Barnes & Noble and Borders, maintaining locations in major cities including Washington, D.C., Baltimore, Chicago, Philadelphia, Houston, Los Angeles, San Francisco, Sacramento, Seattle, and Portland. The introduction of Super Crown Books stores coincided with increased sales volumes seen by rivals such as Borders, Barnes & Noble, and Books-a-Million. This market shift prompted a reassessment of Classic Crown outlets; several smaller stores were projected to become less profitable due to consumer preference for larger bookstores. Under Glenn E. Hemmerle’s leadership as president and CEO from October 1992 until June 1994, the company laid financial groundwork to close multiple smaller locations.Template:Fix/category[citation needed]

Haft family conflict

A contentious divorce between Herbert Haft and his spouse fractured the family dynamic and set Crown Books founder Robert Haft at odds with his father. When Herbert attempted to supplant Robert as Crown Books' leader, tensions escalated dramatically, with their ongoing disputes frequently making headlines in The Washington Post from late 1993 through mid-1994, capturing significant regional media attention. Following Robert's dismissal, key executive roles experienced frequent turnover, depleting the company of both leadership expertise and financial resources.Template:Fix/category[citation needed]

By May 1994, the internal Haft family discord seemed near resolution. Nonetheless, four months later, a jury awarded Robert M. Haft $34.1 million for breach of contract claims against Dart Group and Crown Books. Numerous lawsuits and counterclaims ensued among Haft family members, each striving to secure controlling stakes in the family-operated enterprises. By 1996, Crown was named as co-plaintiff in litigation initiated by the Dart Group against Herbert H. Haft, accusing him of fraud and breach of fiduciary duty related to business dealings during his divorce and ensuing power struggles. Earlier, since 1993, Crown had also been implicated as a co-defendant in comparable lawsuits filed by shareholder factions.Template:Fix/category[citation needed]

In 1995, a standstill order was issued by a Delaware court, limiting certain actions by the Dart Corporation until all legal disputes were settled; by mid-1997, a provisional agreement was reached whereby Herbert H. Haft agreed to surrender his role and voting rights in the Dart Group in return for roughly $41 million.Template:Fix/category[citation needed]

Bankruptcy

Following the breakup of the Dart Group, Crown struggled to secure a buyer and ultimately declared bankruptcy. Steve Stevens (formerly of Circuit City) was brought on as Vice President of Merchandising to succeed Jeanne Herrick and subsequently replaced Glenn E. Hemmerle as CEO. Over subsequent years, the chain shuttered more than half of its 196 outlets and withdrew from markets including Houston, Philadelphia, Baltimore, Portland, and Sacramento. The company restructured with assistance from Ingram Content Group, which supplied jobbing services to support the beleaguered retailer.Template:Fix/category[citation needed]

Crown briefly emerged from bankruptcy in 1997 but re-entered it in 1998 under CEO Anna Currence, hampered by insufficient capital and store sizes inadequate to compete with larger superstore rivals (of the remaining 56 Crown Books locations after the initial bankruptcy, only one featured a drink bar,Template:Fix/category[clarification needed] highlighting Crown's disconnect from evolving retail book trends). The company again exited bankruptcy in spring 2000 with former Waldenbooks CEO Charlie Cumello at the helm, supported by private investors. However, by fall 2000, Wells Fargo acquired Crown’s debt and relentlessly pursued collection fees that ultimately contributed to the brand's collapse. In February 2001, Crown Books filed for liquidation,[1] and by April 2001, Books-A-Million purchased ten stores in the D.C. area along with eight Chicago locations for a fraction of their value.[2] The final liquidation phase concluded by July 2001 with the closure of a former flagship store in Palo Alto, California.Template:Fix/category[citation needed]

The aftermath

Following Crown Books' 2001 bankruptcy, Andy Weiss, proprietor of the independent bookseller A&S Booksellers, acquired the Crown Books brand and trademark, subsequently rebranding most of his outlets under the Crown Books name. In 2007, Ward Albright secured rights to co-use the Crown Books name alongside Weiss and proceeded to open additional stores bearing the Crown Books banner. The current Crown Books operation specializes in purchasing remaindered and overstock books directly from publishers at significant discounts, which are then passed on to customers.

After acquiring several former Crown locations in the Washington, D.C. area, Books-A-Million closed one store shortly thereafter but renovated the remaining 17 stores during 2001 and 2002, also employing many former Crown Books employees. Post-Crown, Anna Currence transitioned into executive recruitment with Brooke Chase Associates Inc., based in Sarasota, Florida. Susan Harwood, who served as Crown's Chief Information Officer, remained with Books-A-Million until 2007 before moving to Borders Books and Music as CIO. Additionally, former Crown area manager Rich Ball briefly supported the transition to Books-A-Million before founding The Page's Edge, a book wholesaler located in Springfield, Virginia.

Corporate affairs

Crown Books' headquarters held a mailing address in Largo, Maryland. Physically, according to the 1990 U.S. Census, the location was situated within the Mitchellville census-designated place (CDP). However, by the 2000 Census, this area had been reclassified as part of the Lake Arbor CDP. The official corporate address was listed as 1601 McCormick Drive with a Largo postal designation, although geographically it fell within what is now recognized as Lake Arbor, Maryland.

Sources

References

  1. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named wbj-2001mar13
  2. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named nyt-2001mar07

Notes

External links

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