Lamonts

Lamonts Apparel, Inc.

File:Lamonts Department Store Logo.png
Company type	Public
Industry	Retail
Founded	Seattle, Washington, United States (1970 (1970))
Founder	M. Lamont Bean
Defunct	2000 (2000)
Fate	Acquired by Gottschalks
Headquarters	Kirkland, Washington , United States
Area served	Alaska, Idaho, Oregon, Washington (2000)
Products	Clothing, footwear, furniture, jewelry, and housewares
Parent	Pay 'n Save (1965-1985)
Subsidiaries	Lamonts for Kids

Lamonts was a department store chain established in Seattle, Washington. It originated in 1970 when Pay 'n Save rebranded its Rhodes suburban outlets—Rhodes being a department store chain acquired by the company in 1965. Remaining under Pay 'n Save's ownership until 1985, Lamonts experienced financial difficulties during the 1990s, filing for bankruptcy twice and closing multiple locations before being purchased by Gottschalks in 2000. Gottschalks subsequently declared bankruptcy and liquidated in 2009.

Rhodes Department Stores

File:Rhodes of Seattle logo.jpg

Logo of Rhodes used until 1969

The Rhodes Department Store was founded in Seattle in 1907 by Albert J. Rhodes, who opened it in the Arcade Building on Second Avenue. Although Albert had previously been a partner at the Rhodes Brothers Department Store in Tacoma, the two businesses operated independently. Inspired by a visit to Wanamaker's renowned department store in Philadelphia, he installed a pipe organ within his establishment. Albert Rhodes passed away in 1921 before expanding the business; however, his wife Harriet W. Rhodes took over management. By 1927, the original premises were insufficient for the store’s needs. Architects Harlan Thomas and Clyde Gral were engaged to design a new seven-story building occupying half a city block, which included the Aeolian pipe organ Albert had envisioned. Following the economic boom after World War II, Rhodes expanded with branch stores at Seattle’s University Village (1956), Bellevue’s Crossroads Mall (July 1964), and Lake Forest Center Mall in Lake Forest Park (October 1964).

File:Rhodes Department Store, 2nd Ave and Union St, Seattle, ca 1925 (SEATTLE 3256).jpg

Rhodes' main Seattle store from 1928 to 1968

In October 1967, The Pay 'n Save Corporation acquired Rhodes amid its financial struggles; this was followed by the purchase of Bell's of Burien Department Store—established in 1956—in Burien in 1968. After acquiring these assets, Pay 'n Save closed Rhodes’ downtown Seattle flagship location in July 1968 to concentrate on suburban markets. The remaining three Rhodes suburban stores along with Bell's continued operating under their original names for several years. In an effort to establish a unified department store brand within Pay 'n Save’s portfolio, all these stores were rebranded as Lamonts in 1970. The chain’s name was derived from M. Lamont Bean, then head of Pay 'n Save Corporation. The Bell’s name remained hyphenated with Lamonts at the Burien location until 1974.

Expansion and Challenges

Following consistent growth throughout the 1970s and 1980s, Lamonts reached a pivotal moment when Pay 'n Save Corp. was acquired by a group of New York investors led by brothers Eddie and Julius Trump. Utilizing $250 million in high-yield bonds, they separated Lamonts and other Pay 'n Save outlets from the parent company, placing them under the control of Northern Pacific Corp. In 1987, Leonard Snyder, previously with Allied Stores Corp., was appointed chairman, ushering in an extensive expansion strategy for the coming years. Seeking additional funding to fuel growth, Lamonts was sold in 1989 to Aris Corp., based in Dallas, Texas, and owned by the Thompson family, known for their association with 7-Eleven. Shortly after this acquisition, although sales reached record highs, the company experienced a decline in profitability. Losses persisted through 1991 and 1992. In November 1992, following a financial restructuring that involved exchanging most common stock for debt reduction with lenders, Lamonts unveiled an ambitious initiative to open three to four new stores annually, each ranging from 25,000 to 30,000 square feet, targeting malls across Eastern Washington, Idaho, Montana, Utah, Colorado, Nebraska, Kansas, North Dakota, and South Dakota. Regrettably, this expansion plan coincided with the early 1990s recession, which burdened the company with substantial debt and ultimately contributed to its downfall.

Decline

During the 1990s, Lamonts faced significant challenges from more dominant competitors like Mervyn's and JCPenney in markets where Lamonts operated. This competitive pressure led to a corporate restructuring in 1992, followed by a filing for Chapter 11 bankruptcy in 1995, and another bankruptcy proceeding in 2000. An expansion effort in the early part of the decade placed the company under substantial financial strain, from which it never fully rebounded. The initial bankruptcy resulted in a reduction of store count from 57 to 43 and prompted a relocation of the headquarters from Bellevue to Kirkland as a cost-saving measure. Executives attributed the downturn to an ineffective inventory strategy and sluggish sales caused by unusually cold spring and summer seasons, factors that ultimately precipitated their financial distress. After exiting bankruptcy protection in early 1998, Lamonts sought to revitalize its brand image by introducing a refreshed store design characterized by brighter interiors and a more inviting shopping environment.

In 1999, Lamonts declined an acquisition proposal from rival Troutman's Emporium. When Lamonts entered its third bankruptcy phase in 2000, Troutman's submitted a bid but was ultimately outbid by Gottschalks. The acquisition plan involved converting some Lamonts locations into Troutman's Emporium stores while selling others to The Bon Marché, a higher-end department store chain headquartered in Seattle. Ultimately, Lamonts was purchased by Gottschalks through bankruptcy court proceedings. Gottschalks acquired 34 of the remaining 38 Lamonts outlets and rebranded them under its own name by year’s end. Unfortunately, these stores did not meet profitability expectations, leading Gottschalks to announce on March 31, 2009, the closure and liquidation of all remaining 58 locations. The original downtown Rhodes building was demolished in 2003 to make way for the Seattle Art Museum and the new Washington Mutual Tower.

Concept stores

In 1991, Lamonts introduced Lamonts For Kids, a specialty retail concept focusing exclusively on children's apparel—a category that represented one of their most lucrative segments, accounting for approximately 17 percent of overall sales. The inaugural store launched in Boise, Idaho, followed by additional locations in Salt Lake City, Omaha, and within Minnesota’s Mall of America. Typically situated inside shopping malls, these outlets featured vibrant colors and graphics tailored to appeal to children, along with play zones and custom-designed fixtures suited for young shoppers. Store layouts incorporated wide aisles and oversized fitting rooms to accommodate double strollers, plus restrooms equipped with infant changing stations. A central attraction named "Lamonster Land" offered video screens displaying cartoons and other entertainment options for kids, alongside books and plush toys. Despite these innovations, the chain was discontinued in December 1994 due to operational difficulties. At its height, Lamonts For Kids operated eight stores.

The Lamonsters brand, launched in 1986 as a line of infant through children's apparel, was phased out by 1995.

Further reading

• Enterprise. (May 1, 2000). California Clothier Considers Expansion into Utah Market.
• Wenatchee Business Journal (1999): B23. "Lamonts No Longer Considered Acquisition Candidate."

External links

• Rhodes Pipe Organ - University of Washington Special Collections. Accessed October 26, 2019.
• Archives of The Seattle Times and Seattle P-I.
• Directory of Gottschalks Stores
• University of Washington Special Collections: Historic Photos of Rhodes. Accessed October 26, 2019.