Marshall Cogan

Marshall S. Cogan
Born	1937
Occupation(s)	Entrepreneur, investor, financier
Known for	Founder of United Automotive Group; partner at Cogan, Berlind, Weill & Levitt; founder of Foamex International

Marshall S. Cogan (born 1937) is an American entrepreneur, investor, and former financier. He established United Automotive Group, which he expanded into one of the leading automobile and truck retail chains in the United States. During the 1970s and 1980s, Cogan was active as a private equity investor, acquiring multiple companies. Additionally, he was a partner at Cogan, Berlind, Weill & Levitt, an investment banking and brokerage firm that played a significant role in consolidating financial services throughout the 1970s.

Early life and education

Cogan was born into a Jewish family and completed his undergraduate studies at Harvard College in 1959. He later obtained an MBA from Harvard Business School. He also graduated from the Boston Latin School in 1955, where he remains a notable alumnus and benefactor.

Early career

Cogan’s professional journey began at CBS, followed by a position at Orvis & Co. In 1964, he joined the investment banking firm Carter, Berlind & Weill as an analyst specializing in the automobile industry. He rose to partner status, and by 1968, after Arthur L. Carter's departure, the firm was renamed Cogan, Berlind, Weill & Levitt. His partners included Sandy Weill (who later became CEO of Citigroup), Arthur Levitt (former SEC chairman), and Roger Berlind (Broadway producer and board member at Lehman Brothers).

In August 1973, Cogan departed to concentrate on leveraged buyout transactions. His initial significant acquisition came in 1974 when he and Stephen Swid purchased General Felt Industries (GFI). They combined GFI with Knoll International, which served as a holding entity for subsequent acquisitions. Among their prominent purchases were Sheller-Globe Corporation and the famed 21 Club. Throughout the 1980s leveraged buyout surge, Cogan made high-profile but unsuccessful bids for the Boston Red Sox, Sotheby's, and L.F. Rothschild.

Foamex and United Auto

Following Stephen Swid’s exit in the mid-1980s, Cogan began developing Foamex International. While Swid acquired CBS Records' music publishing arm, Cogan purchased Foamex Products from Firestone Tire & Rubber. He grew Foamex by acquiring three regional foam producers in 1988, merging General Felt Industries into the operation, and purchasing Great Western Foam Co. on the West Coast. By 1993, Cogan consolidated his assets under Foamex International and took the company public. By the mid-1990s, Foamex had become North America’s largest producer and distributor of flexible polyurethane foam products.

In 1990, Cogan launched United Automotive Group—now known as Penske Automotive Group—with a focus on acquiring and integrating automobile and truck dealership franchises across the country. After encountering financial setbacks, United Auto merged with Roger Penske’s enterprise in 1999; it was rebranded as Penske Automotive in 2007.

Bankruptcy of Trace International

In July 1999, Trace International Holdings—Cogan’s holding company—filed for bankruptcy protection. Trace controlled major stakes in both Foamex International and United Automotive Group and had used their stock as loan collateral. Following declines in these companies’ valuations during 1998-1999, Trace became insolvent. In 2003, allegations arose accusing Cogan and Trace directors of misappropriating funds; however, a Delaware appeals court cleared Cogan of all accusations in 2005.

Trace was owned approximately 70% by Cogan and 30% by three other investors. The bankruptcy resulted after a significant bank withdrew a $1 billion financing commitment amid widespread turmoil in U.S. financial markets. The appointed Trustee contended that Cogan treated Trace as a personal holding entity by drawing excessive salaries, loans, and payments to family members without reimbursement. The Trustee argued that fiduciary duties toward creditors existed due to Trace’s status within the "zone of insolvency," a claim disputed by Cogan and other board members.

A 2003 ruling from a U.S. District Court determined that over six years, Cogan received $39.6 million in compensation—$6.9 million more than peers—and dismissed his claims for loan repayments. This ruling was overturned on appeal in 2005 because of procedural errors; simultaneously, Cogan reached a personal settlement. In 2007, the Delaware Supreme Court held that directors of companies approaching insolvency do not owe fiduciary duties to creditors, weakening legal claims against Cogan except those related to loan obligations.

In 2006, Cogan joined the board of Ener1, a company specializing in manufacturing lithium-ion batteries for plug-in hybrid vehicles.

Other affiliations

Cogan has held positions as Chairman and Director at Color Tile, Inc., Knoll International, and Sheller-Globe Corporation.