Garfinckel, Brooks Brothers, Miller & Rhoads
| Company type | Conglomerate |
|---|---|
| Industry | Retail |
| Founded | 1 January 1967 in Washington, D.C., United States |
| Defunct | 1 August 1981 |
| Headquarters | Washington, D.C. , United States |
Area served | United States |
| Products | Department and specialty stores |
Garfinckel, Brooks Brothers, Miller & Rhoads, Inc. was a national retail conglomerate headquartered in Washington, D.C., operating from 1967 until 1981.
History
This retail conglomerate was established in 1967 when Julius Garfinckel & Co., which had acquired the men's specialty retailer Brooks Brothers in 1946, expanded by purchasing the Miller & Rhoads chain based in Richmond, Virginia. By 1968, the company managed 29 department and specialty stores across four divisions, including De Pinna. Garfinckel's had previously acquired De Pinna in 1950 but decided to close its three apparel outlets in 1969. That same year marked the acquisition of Miller, Inc., a six-store chain from Knoxville, Tennessee, which was later rebranded as Miller's of Tennessee in 1973 following the purchase of Miller Brothers of Chattanooga.
Throughout the 1970s, the conglomerate pursued steady growth and achieved significant profitability. In 1971, it took over the Washington, D.C.–based apparel chain Joseph R. Harris Co., which operated 11 stores—nine within the Washington metropolitan area and two additional locations in Atlanta, Georgia and Charlotte, North Carolina. Joseph R. Harris Co. was a local retailer with close connections to Garfinckel's leadership. The following year, the company acquired Harzfeld's, a six-store women's and children's upscale apparel chain from Kansas City, Missouri, for $3 million. By 1973, Garfinckel's operated 66 stores across fourteen states plus the District of Columbia. The acquisition of two Gus Meyer stores in Oklahoma City and Tulsa, Oklahoma in 1974—later integrated into Harzfeld's—expanded the portfolio to 86 stores nationwide.
In 1977, the company made a substantial expansion by acquiring two major chains: the women's fashion retailer Ann Taylor, consisting of 27 stores purchased for $14 million; and Catherine's Stout Shoppe, specializing in plus-size apparel with 73 outlets acquired for $23.4 million. At this point, the conglomerate operated a total of 192 retail locations. Despite economic challenges during 1976–77, this period marked the most profitable phase in the company's history.
Due to its strong financial performance, Garfinckel attracted significant attention from Wall Street investors. In 1978, Minneapolis-based retailer Gamble-Skogmo, Inc. launched a takeover attempt—the third attempted acquisition within two years. Gamble-Skogmo secured a controlling interest by purchasing a 20-percent stake from the Joseph R. Harris family. However, legal action led to an agreement preventing Gamble-Skogmo from increasing its ownership further. The following year, Garfinckel divested Joseph R. Harris Co., then operating as Harris & Friends, selling it to Cleveland's Petrie Stores Corp.. At that time, Harris maintained 26 stores spanning Maryland, Virginia, North Carolina, Pennsylvania, Georgia, and Washington D.C.
The conglomerate’s final major acquisition occurred in 1980 with the purchase of Texas-based fashion specialty chain Frost Bros., comprising seven stores and acquired for $27.2 million. By 1981, Garfinckel oversaw nearly 190 stores distributed among seven chains. Initial negotiations involved selling its Miller & Rhoads division to Allied Stores; however, in August of that year, Allied Stores completed the acquisition of Garfinckel, Brooks Brothers, Miller & Rhoads, Inc. for $228 million. This deal included ownership of 178 department stores and 48 specialty shops across 28 states. Allied’s primary motivation was identifying Brooks Brothers as the most lucrative asset within the portfolio during their due diligence process. Consequently, Allied retained Brooks Brothers and proceeded to liquidate the remaining divisions of the conglomerate.
Corporate Divisions
- Ann Taylor – based in New York (acquired in 1977)
- Brooks Brothers – New York (original division, acquired by Garfinckel's in 1946)
- Catherine's Stout Shoppe – a Nashville, Tennessee chain (acquired in 1977)
- De Pinna – New York (original division, purchased by Garfinckel's in 1950, closed in 1969; locations included Fifth Avenue and 52nd Street, New York; Eastchester, New York; and Fort Lauderdale, Florida)
- Frost Bros. – Texas (acquired in 1980)
- Garfinckel's – Washington, D.C.
- Harzfeld's – Kansas City, Missouri (acquired in 1972)
- Joseph R. Harris Co. – Washington, D.C. (acquired in 1971, sold in 1979 to Petrie Stores)
- Miller & Rhoads – Richmond, Virginia
- Miller Brothers of Chattanooga – Chattanooga, Tennessee (acquired in 1969; merged with Miller's Inc. in 1973)
- Miller, Inc. – Knoxville, Tennessee (acquired in 1969; merged with Miller Brothers of Chattanooga in 1973)
- Miller's Department Store – (established August 1, 1973, through the consolidation of Miller Brothers of Chattanooga and Miller, Inc.; initially comprised 11 stores and 2 specialty shops across eastern Tennessee, Georgia, Virginia, and North Carolina)