Russeks
| Company type | Private |
|---|---|
| Industry | Retail (Department store) |
| Founded | 1885 |
| Founder | Frank Russek, Isidore H. Russek |
| Headquarters | New York City , United States |
Area served | New York City, Brooklyn, Chicago, Philadelphia, Yonkers, Paramus |
Key people | Frank Russek (co-founder), Isidore H. Russek (co-founder), David Nemerov (chairman), Joseph Kassner (president) |
| Products | Women's furs, coats, suits, dresses, apparel, accessories |
Number of employees | 1100+ (1945) |
Russeks was a distinguished department store specializing in women's furs and apparel, situated at 390 Fifth Avenue in Midtown Manhattan, New York City, within the Gorham Building. Established in 1885 by brothers Frank Russek and Isidore H. Russek, the enterprise expanded its presence beyond its Manhattan flagship to include locations in Brooklyn, Chicago, and Philadelphia. By 1945, the company employed more than 1,100 individuals and by 1948 had become one of the foremost specialty retailers dedicated exclusively to women's furs, coats, suits, and dresses.
Early years
The origins of Russeks’ fur trade trace back to before 1823. The firm was founded in 1885 in Manhattan by brothers Frank Russek, a Polish Jewish immigrant involved with the United Jewish Appeal, and Isidore H. Russek. Starting with less than $1,000 in capital as a furrier selling muffs and fur scarves, the business gradually broadened its offerings to include luxury garments and accessories, eventually operating under the name Russeks Fifth Avenue, Inc.
Throughout its early development, the store underwent several relocations: moving to 23rd Street in 1905, then to 34th Street between Fifth and Sixth Avenues in 1911, followed by a move to 362 Fifth Avenue in 1913. By September 1924, Russeks inaugurated a women's apparel department store spanning eight floors at 390 Fifth Avenue and West 36th Street—considered a prime retail district at that time. The establishment featured upscale merchandise such as dresses, wraps, hats, dress accessories, ermine and sable furs, gowns, coats, tailored suits, and footwear influenced by Parisian styles. The building itself was designed by architect Stanford White for the Gorham Manufacturing Company.
In 1928, Russeks reported net earnings of $357,000. By 1933, the company shifted its focus exclusively toward furs and ready-to-wear clothing. Net profits after taxes were $103,000 in 1934 and increased to $220,000 in 1935. In August 1937, Russeks expanded into Brooklyn with a new five-story store located at Fulton Street and Bridge Street. Although the company experienced a net loss of $126,000 in 1938, it rebounded with a net profit of $54,000 in 1939. Sales grew by 6.3% in 1940; notably, the company carried no outstanding bank loans and planned to open a branch in Chicago.
This period of early growth and strategic realignment highlights Russeks’ business approach centered on upscale clientele and expansion both within New York City and into other markets.
1940–49
In July 1940, Russeks launched its first Midwest retail outlet at 200 North Michigan Avenue in Chicago, Illinois. This location was distinguished as the first store in that area to feature fluorescent lighting and air conditioning throughout.
On August 29, 1940, the Manhattan flagship recorded its highest single-day sales with nearly 10,000 shoppers—partly driven by wartime draft anxieties that encouraged consumer purchases. The company’s net profits steadily increased during this era: $112,000 in 1940; $201,000 in 1941; $293,000 in 1942; and $406,000 in 1943. In 1941, Diane Nemerov—granddaughter of co-founder Frank Russek and daughter of future chairman David Nemerov—joined the advertising division alongside her husband Allan Arbus; both later became renowned fashion photographers. By January 1943, the firm awarded bonuses mainly composed of US War Saving Bonds to its workforce of approximately 800 employees; employee numbers exceeded 1,000 by 1944.
Following World War II, financial results varied: net profit peaked at $1,272,000 in 1946 but fell to $472,000 by 1949 due to reduced sales volumes and rising operational expenses. By 1948, Russeks ranked among the largest international retailers exclusively offering women’s furs, coats, suits, and dresses. In September 1949, it opened its fourth U.S. location—a four-story women’s apparel store at 1212 Chestnut Street in Philadelphia—specializing in furs and clothing aimed at younger women.
A notable employee during this period was Holocaust survivor Marion Wiesel who joined as a sales associate after arriving in the United States following World War II in 1949.
Later years
From 1950 to 1952, the company's financial results showed considerable variability, with net earnings of $581,000 in 1950, declining sharply to $135,000 in 1951, and culminating in a net deficit of $286,000 by 1952. In June of that year, the firm discontinued operations at its unprofitable Philadelphia location. As part of its suburban expansion strategy, it launched a new store at Cross County Shopping Center in Yonkers in 1954, specializing in women's and children's clothing, followed by the introduction of a fur boutique at the Savoy-Plaza Hotel in Midtown Manhattan in 1955. Despite these expansions, the company recorded net losses amounting to $135,000 in 1954 and $120,000 in 1955; nonetheless, the Yonkers and Savoy-Plaza outlets generated profits.
By February 1957, after being listed on the American Stock Exchange, a consortium of investors from Chicago secured a majority ownership of 57%. That same year, the company shuttered its Chicago store due to declining fur sales despite retaining its market dominance. Joseph Kassner, a new investor with prior leadership experience at maternity apparel retailers Maternity Modes and Maternity Sportswear, was appointed president. Russeks incorporated these maternity retail and manufacturing operations as a division to broaden its product range. In September 1957, it inaugurated a second suburban women's apparel store located at Garden State Plaza in Paramus, New Jersey; this location remained operational until 1960.
The company endured substantial net losses totaling $630,000 in 1956 and $128,000 in 1957. Early in 1959, following five consecutive years of losses at its flagship store—originally opened 35 years prior on the corner of 36th Street and Fifth Avenue—Russeks announced its closure while continuing to operate its outlets at the Savoy-Hilton Hotel as well as stores in Brooklyn, Paramus, and Yonkers. The net loss further escalated to $740,000 in 1959.