Duane Reade
| Company type | Subsidiary |
|---|---|
| Industry | Pharmacy, Convenience store |
| Founded | 1960 |
| Founder | Abraham Cohen, Eli Cohen, Jack Cohen |
| Headquarters | New York City , United States |
Area served | New York metropolitan region |
Key people | Richard Dreiling (CEO) |
| Products | Pharmacy and convenience retail products |
| Parent | Walgreens Boots Alliance |
Duane Reade Inc. () operates as a pharmacy and convenience store chain under the ownership of Walgreens, predominantly serving the New York metropolitan region, including New York City and adjacent counties in both New York and New Jersey. Renowned for its high-traffic, compact outlets situated in densely populated Manhattan areas, Duane Reade shifted its corporate headquarters to 40 Wall Street in Lower Manhattan in 2012, coinciding with the launch of its flagship retail location.
History
Established in 1960 by the Cohen brothers—Abraham, Eli, and Jack—Duane Reade started with three retail stores and a warehouse positioned on Broadway between Duane and Reade Streets in Lower Manhattan. The company’s name is derived from these two intersecting streets. In 1992, the Cohen family sold Duane Reade to Bain Capital for roughly $239 million. Subsequently, Bain Capital transferred majority ownership to Donaldson, Lufkin & Jenrette in 1997. The firm went public on February 10, 1998, with shares trading under the ticker symbol DRD on the New York Stock Exchange. In 2004, Oak Hill Capital Partners acquired Duane Reade, returning it to private ownership.
During Anthony Cuti’s tenure as CEO—previously president of Pathmark—Duane Reade expanded its footprint from 59 stores in 1996 to 249 by 2005, establishing itself as the largest drugstore chain within New York City. The acquisition of Rock Bottom Stores Inc. in 1998 for $30 million plus inventory costs added 38 outlets to its portfolio. Revenue increased from $1.14 billion in 2001 to $1.38 billion by 2003; however, growth slowed due to union conflicts, economic recession effects, and the closure of a key store after the September 11 attacks.
By October 2008, Duane Reade carried long-term debt amounting to $405 million and reported a net loss of $33.1 million during the first half of that year. Nearly all of its stores are concentrated within New York City or its immediate suburban areas.
In April 2006, Duane Reade committed to making all its locations compliant with the Americans with Disabilities Act (ADA), projecting a renovation period of approximately two years. A refreshed logo was introduced toward the end of 2008, and DeVito/Verdi was appointed as the primary advertising agency in 2009.
Walgreens acquired Duane Reade on April 9, 2010, for $1.075 billion—comprising $618 million in cash plus $427 million in assumed debt—which included corporate headquarters, 257 retail outlets, and two distribution centers. In July 2011, Duane Reade inaugurated a new store at its headquarters located at 40 Wall Street.
Litigation and disputes
Duane Reade and its leadership have encountered multiple legal challenges involving federal and local authorities as well as labor organizations.
In April 2006, the company resolved a five-year contract dispute with two labor unions representing clerks, cashiers, pharmacy clerks, technicians, and photo technicians. The resulting three-year contract agreement concluded pending claims before the National Labor Relations Board.
In November 1997, Duane Reade settled allegations concerning the sale of expired or overpriced merchandise at its New Jersey locations by paying $200,000 in fines and agreeing to adhere strictly to state regulations without acknowledging any wrongdoing.
In October 2008, CEO Anthony Cuti and former CFO William Tennant were indicted on charges of securities fraud related to misreporting income between 2000 and 2005. Richard Dreiling—previously COO of Longs Drugs—succeeded Cuti as CEO in 2005. Both executives were found guilty in June 2010; Cuti received a three-year prison term while Tennant was sentenced to time served along with supervised release and a monetary penalty.
External links
- Articles with short description
- Convenience retailers in the United States
- Pharmacy chains in the United States
- Retail outlets in New York City
- Manhattan-based enterprises
- American corporations founded in 1960
- Retail businesses founded in 1960
- 1960 establishments within New York City
- Formerly listed on the New York Stock Exchange
- Healthcare firms headquartered in New York (state)
- Walgreens Boots Alliance affiliates
- Initial public offerings in 1998
- Mergers and acquisitions in 2004
- Mergers and acquisitions in 2010
- Companies owned by Bain Capital
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- American companies established in 1960
- Companies of the United States by year of establishment