Sunbeam Products
| Company type | Subsidiary |
|---|---|
| Industry | Home appliances |
| Predecessor | Chicago Flexible Shaft Company |
| Founded | 1897 |
| Founder | John K. Stewart, Thomas J. Clark |
| Headquarters | Boca Raton , United States |
Area served | United States, Canada |
| Products | Mixmaster stand mixer, Sunbeam CG waffle iron, Coffeemaster, T20 toaster |
Number of employees | ~30,000 (late 1970s) |
| Parent | Newell Brands |
Sunbeam Products is a U.S.-based manufacturer established in 1897, known for producing electric home appliances under the Sunbeam label since 1910. Among its prominent offerings are the Mixmaster stand mixer, Sunbeam CG waffle iron, the Coffeemaster (produced from 1938 to 1964), and the fully automatic T20 toaster.
The company encountered severe difficulties, declaring bankruptcy in 2001 following a significant accounting fraud investigation by the SEC. It resurfaced in 2002 under the name American Household, Inc. (AHI). In 2004, Sunbeam was purchased by Jarden Consumer Solutions, which was subsequently acquired by Newell Brands.
Origins
The Chicago Flexible Shaft Company was founded in 1897 by John K. Stewart and Thomas J. Clark, initially specializing in equipment for horse grooming and sheep shearing. The first appliance bearing the Sunbeam brand was the Princess Electric Iron, introduced in 1910. The "Sunbeam" name was selected through a company-wide contest won by Edwin J. Gallagher, who earned a $1,000 prize. The company officially adopted the name Sunbeam in 1946.
In 1928, Swedish immigrant Ivar Jepson collaborated with Bernard Alton Graham to develop the Mixmaster mixer, which debuted in 1930 as the pioneering mechanical mixer featuring two interlocking detachable beaters. The Mixmaster became Sunbeam’s signature product for approximately forty years and was complemented by various attachments such as juice extractors, meat grinders, slicers, and shredders. It incorporated a rotating bowl mounted on a friction-driven turntable and could also be used as a handheld mixer when detached from its base.
Aside from the Mixmaster, Sunbeam earned acclaim for innovative designs by Robert Davol Budlong across electric toasters, coffee makers, and shavers.
The Mixmaster’s legacy extended beyond kitchen appliances; it even inspired the name of a cosmological model describing the early universe.
Expansion
Sunbeam broadened its product portfolio through acquisitions such as Rain King Sprinkler Company, renowned for its lawn sprinklers during the 1950s and 1960s. By the late 1970s, Sunbeam stood as one of America’s foremost small appliance manufacturers with annual revenues near $1.3 billion and a workforce approaching 30,000 worldwide. The company also acquired John Oster Manufacturing in 1960. Following its acquisition by Allegheny International Inc. of Pittsburgh in 1981, Sunbeam relocated its headquarters there and shuttered numerous Chicago-area factories. Throughout much of the 1980s under Allegheny’s ownership, Sunbeam became the largest small appliance producer globally. Allegheny’s holdings also included subsidiaries such as John Zink Company (specializing in air pollution control) and Hanson Scale (known for bathroom scales).
Despite this growth, Allegheny’s major divisions—including Sunbeam—experienced decline toward the late 1980s. With Sunbeam-Oster accounting for nearly half of Allegheny’s revenue, investor confidence waned due to management issues. In 1986, Chairman and CEO Robert Buckley resigned amid allegations of misappropriating funds. His replacement Oliver Travers implemented significant downsizing measures that reduced the company primarily to Sunbeam and Oster operations by 1988. The downturn intensified after the 1987 stock market crash, culminating in Allegheny filing for Chapter 11 bankruptcy protection.
In 1989, investment firm Japonica Partners executed a hostile takeover of Allegheny for $250 million. The enterprise was rebranded as Sunbeam-Oster Company, Inc., reorganized into four segments: Outdoor Products, Household Products, Specialty Products, and International Sales. The corporate headquarters moved successively from Pittsburgh to Providence, Rhode Island, then to Fort Lauderdale, Florida. By late 1991, Sunbeam-Oster reported a seven percent increase in sales and secured its position on the Fortune 500 list.
Fraud inquiry and insolvency
In 1996, Albert J. Dunlap took on the roles of CEO and chairman at Sunbeam-Oster, promptly initiating workforce reductions that eliminated half of the employees. By 1997, the company announced significant growth in sales of backyard and kitchen items, while Dunlap secured controlling interests in Coleman and Signature Brands, which included Mr. Coffee and First Alert. Although the stock price climbed to $52 per share, industry experts became wary as the heightened demand appeared unsustainable.
A subsequent internal review uncovered critical financial difficulties and accounting misconduct encouraged by Dunlap. He was removed from his position, and under the leadership of CEO Jerry W. Levin, the firm sought Chapter 11 bankruptcy protection in 2001.
After the bankruptcy filing, the U.S. Securities and Exchange Commission (SEC) initiated legal action against Dunlap and four additional executives, accusing them of engineering a $60 million accounting fraud within the reported $189 million earnings for 1997. The SEC claimed Dunlap distorted losses from 1996 to falsely amplify a corporate turnaround. The case also implicated Phillip Harlow from Arthur Andersen, Sunbeam’s auditing firm. Ultimately, Dunlap was prohibited from holding any officer or director roles in public companies.
Post-SEC investigation
Emerging from bankruptcy in 2002, Sunbeam rebranded as American Household, Inc. (AHI), operating as a private entity with its household products segment functioning under the subsidiary Sunbeam Products, Inc.
In September 2004, AHI was acquired by Jarden Corporation, which subsequently broadened its brand portfolio by purchasing the Holmes Group in 2005, K2 Sports in 2007, and Mapa Spontex in 2009. Additional acquisitions included Aero International and Quickie Manufacturing. By 2015, Sunbeam batteries were manufactured in China and imported into the United States by Greenbrier International and into Canada by DTSC Imports for distribution through Dollar Tree stores.
The acquisition of Jarden Corporation by Newell Rubbermaid in 2016 resulted in the formation of Newell Brands, further strengthening its foothold within the consumer goods market.
See also
External links
- Articles with short description
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