Kinney National Company
| Company type | Public |
|---|---|
| Industry | Mass media, entertainment, funeral services, parking operations, cleaning services |
| Predecessor | Kinney Service Corporation |
| Founded | December 26, 1961 in New York City, United States |
| Founder | Steve Ross, William V. Frankel |
| Defunct | 1972 |
| Fate | Renamed Warner Communications Inc. |
| Headquarters | New York City , United States |
Area served | United States |
Key people | Steve Ross (CEO, President, Chairman), Edward Rosenthal (Chairman), Caesar Kimmel (Principal shareholder) |
| Products | Funeral services, parking operations, cleaning services, entertainment media |
Kinney Services Inc., originally known as Kinney National Service Inc., was a prominent American mass media conglomerate based in New York City. The company began as Kinney Service Corporation, serving as the parent organization for businesses in funeral services, parking operations, and cleaning services. After its public offering in 1962, Kinney broadened its portfolio by acquiring various service-oriented enterprises and completed a merger with National Cleaning Contractors (established in 1886) in 1966.
Following this merger, Kinney National redirected its strategy toward the entertainment sector, notably purchasing companies such as Warner Bros.-Seven Arts. By 1971, most of its non-entertainment assets had either been spun off into National Kinney Corporation or sold. In 1972, the firm underwent restructuring and adopted the name Warner Communications Inc., reflecting its focus on the Warner Bros. brand and core media operations.
The company’s leadership featured founders Steve Ross and William V. Frankel, whose guidance was instrumental in executing acquisitions that transformed the company from a service-based entity into an entertainment powerhouse. This corporate transition illustrates a deliberate shift from traditional service industries to media and entertainment, strengthening its market presence and competitive positioning.
Riverside Funeral Home's growth and expansion
Riverside Memorial Chapel originated in 1897 as Meyer's Livery Stable, established by Louis Meyer and his son-in-law Charles Rosenthal. Initially operating in Manhattan’s Lower East Side, the business relocated to East Harlem before settling on the Upper West Side in 1927, where its primary chapel was founded. In 1933, Meyer's & Company divided into Riverside Memorial Chapel Inc. and Park West Memorial Chapel. Charles Rosenthal continued as a funeral director while his sons Edward and Morton Rosenthal assumed management roles. The brothers expanded the enterprise through acquisitions of additional funeral homes and by opening multiple Riverside Chapels throughout New York City and Florida, making Riverside Memorial Inc. the largest funeral service provider nationwide by the 1950s.
Incorporation and history of Kinney Parking Company
Kinney Parking System managed parking facilities throughout New Jersey and New York. Founded in 1945 by Manny Kimmel, it secured leases for Newark’s largest parking lots by 1948. Kimmel maintained a discreet profile while owning two-thirds of the company’s shares; his son Caesar Kimmel served as President. Although there were historical connections to organized crime figures, Kinney Parking System remained a leading regional operator in the parking industry.
Steve Ross and establishment of Kinney Service Corporation
Steve Ross, born on April 5, 1925, in Brooklyn, began his professional journey after military service working as a clothing salesman before joining Riverside Chapel in 1956 at Edward Rosenthal’s invitation as a funeral director. Recognizing underutilized resources, Ross initiated Abbey Rent-A-Car to rent out idle limousines; however, this venture faced financial difficulties.
In 1959, Ross collaborated with Caesar Kimmel, CEO of Kinney Parking System, to rebrand Abbey as Kinney System Rent-A-Car, offering complimentary parking at Kinney lots to renters; Kinney acquired a 25% ownership stake. Despite these efforts, the rental operation continued to incur losses. By 1960, Ross, Kimmel, and Rosenthal agreed to consolidate Kinney Parking System, Kinney Rent-A-Car, Riverside Memorial Chapel Inc., and City Service Cleaning Contractors into a publicly traded company—Kinney Service Corporation—finalized on December 26, 1961. Steve Ross was named President, Edward Rosenthal Chairman, with Caesar Kimmel becoming a principal shareholder. This merger represented a strategic diversification that set the stage for substantial growth and greater market influence.
Kinney Service Corp's formative period
In April 1962, Kinney Service Corporation prepared to launch its initial public offering on the New York Stock Exchange, reporting revenues of $17 million. Its holdings comprised Kinney System Inc (specializing in parking operations), Riverside Memorial Chapel Inc (operating 10 funeral chapels across New York and Florida), Kinney Rent-A-Car (maintaining a fleet of approximately 2,000 vehicles), and City Service Cleaning Contractors. Kinney System oversaw 80 parking facilities distributed throughout multiple states.
Merger and entry into entertainment
On August 12, 1966, Kinney Service merged with National Cleaning Contractors Inc., adopting the name Kinney National Services Inc., with Steve Ross remaining as CEO. The "National" portion was later removed in February 1971.
Kinney National pursued rapid expansion through a series of acquisitions:
- July 1967: Took over National Periodical Publications (which later became DC Comics), including the publication Mad magazine.
- November 1967: Acquired Hollywood talent agency Ashley-Famous; founder Ted Ashley played a key role in recommending the purchase of Warner Bros.-Seven Arts.
- February 1968: Added Panavision, Inc. to its portfolio.
- October 1968: Divested Kinney System Rent-A-Car for roughly $11 million.
- July 1969: Finalized the acquisition of Warner Bros.-Seven Arts; due to antitrust regulations, Ashley-Famous was sold off. Ted Ashley assumed leadership of the film division. Warner Bros.-Seven Arts was rebranded as Warner Bros. Inc., which later regained market strength with successes such as Woodstock.
- 1970: Purchased Elektra Records along with Nonesuch Records.
In June 1971, Riverside Memorial Chapel was sold to Service Corporation International, while parking and cleaning operations were spun off into National Kinney Corporation.
By November 1971, Kinney had acquired Television Communications Corporation (renamed Warner Cable in 1973), marking its entrance into cable television and recording studio businesses.
Kinney National also owned Circle Floor, a wood flooring manufacturer acquired in 1964 for $15 million; the Milstein brothers managed this division until its sale in 1971.
Financial controversy, divestiture, and restructuring
After being implicated in a price-fixing scandal related to its parking services, Kinney National separated its non-entertainment divisions on August 7, 1971, creating National Kinney Corporation. The remaining company was renamed Warner Communications Inc. on February 10, 1972.
Steve Ross held the combined roles of CEO, president, and chairman, steering the company through this period of transformation. The board featured prominent figures such as Charles A. Agemian, CEO of Garden State National Bank, ensuring a robust governance framework aimed at recovery and expansion.