Davega Stores

Davega Stores

Company type	Subsidiary
Industry	Retail
Founded	1879
Founder	I. Davega
Defunct	1963
Fate	Bankrupt; eight stores acquired by Henry Modell & Co.
Headquarters	New York City , United States
Area served	Greater New York City region, New Jersey
Key people	H. M. Stein (president, mid-1950s), Abram Davega (vice-president, mid-1950s)
Products	Consumer durables, appliances, sporting goods, clothing, radios, televisions, baseball-themed board games
Parent	Atlas Stores Corporation

Davega Stores was a retail chain specializing in consumer durables, appliances, sporting goods, and clothing, operating 27 outlets throughout the greater New York City region by 1954.

The company was established in 1879 by I. Davega at the corner of Third Avenue and 34th Street. During the mid-1950s, H. M. Stein served as president, while Abram Davega, the founder’s son, held the position of vice-president. The enterprise operated as a subsidiary under Atlas Stores Corporation.

Among its merchandise were radios, televisions, and baseball-themed board games. In late 1928, the Kolster Radio Corporation entered into a contract with Davega Stores, significantly expanding the retailer’s radio product offerings. By 1936, Davega had become a major shareholder in Majestic Radio & Television.

Business history

In November 1928, Davega inaugurated its 14th branch at 166-07 Jamaica Avenue in Jamaica, Queens. The company's 27th location commenced operations at 924 Flatbush Avenue, Brooklyn, in April 1932. By May 1953, Davega maintained five stores in New Jersey (Hackensack, Jersey City, Newark, New Brunswick, and Paterson) alongside ten outlets across New York (Manhattan, Astoria, Brooklyn, Flushing, Hempstead, Jamaica, Rego Park, White Plains, Syosset, and Yonkers).

The company reported a substantial profit increase in June 1953 for the fiscal year ending March 31, 1952. Net earnings reached $118,998, equating to $0.24 per common share. Inventory levels rose by $143,000 compared to the previous year, amounting to a total stock value of $4,389,000. On December 16 of that year, the board decided against issuing a common dividend—which had previously been $0.15 semiannually—while declaring a quarterly dividend of $0.25 on its five percent preferred stock payable January 2, 1954. By May of the following year, annual sales reached approximately $25 million.

In April of 1954, Davega Stores utilized significant newspaper advertising and window displays to promote Line Drive, a baseball game produced by Lord & Freber of Los Angeles, California. This game evaluated players' skills in team management and gameplay strategy.

On November 6, 1954, the company launched a new outlet located at 152 West 42nd Street near Times Square. During its grand opening event, customers were offered promotions including a table radio originally priced at $20 for only $0.98 and refurbished television sets for $7.95. The store remained open throughout the night on opening day and extended hours until midnight the following evening.

Bankruptcy

In April 1963, a federal court placed Davega Stores into a straight bankruptcy proceeding after the court-appointed trustee was unable to devise a reorganization strategy that would allow the chain to satisfy its outstanding obligations. During an auction held that same month, Henry Modell & Co., the parent company of what is now known as Modell's Sporting Goods, successfully purchased eight of the Davega locations with a bid totaling $311,000. Henry Modell assumed the role of president for the newly established Modell's Davega, Inc., which merged these eight acquired Davega outlets with four existing discount stores. The corporate headquarters for this combined entity was relocated to the former Davega store situated within the Commodore Hotel.