discount department store fate bankruptcy liquidation founded 1951 founders carl and dorothy bennett defunct 1999 headquarters norwalk ct number of locations 145 1998 number of employees 22 000 1998 parent independent 1951 1981 ; 1991 99 associated dry goods may department stores 1981 1990 website http caldor .8 k.com caldor inc. was a discount department store chain founded in 1951 by carl bennett and his wife dorothy . referred to by many as the bloomingdale s of discounting 1 caldor grew from a second story walk up & save operation in port chester ny into a regional retailing giant . 2 its stores were earning over 1 billion in sales by the time mr. bennett retired in 1985 by which time caldor was a subsidiary of associated dry goods . 3 despite its successes caldor suffered from financial issues in its later years and the company was liquidated in early 1999 . contents 1 history 1.1 early history 1.2 initial expansion 1.3 accelerated growth 1.4 estate of thornton v. caldor inc. 1.5 purchase by associated dry goods 1.6 carl bennett s retirement 1.7 first bankruptcy 1.8 1998 weekly ad printing error 1.9 second bankruptcy and liquidation 2 caldor distinctives 3 awards 4 references history edit early history edit while shopping at an e. j. korvette store in new york city in 1951 newlyweds carl and dorothy bennett had a brainstorm to open their own discount store that would be different than the average postwar discount retailer . their vision included several factors that had served as the chain s cornerstones of continual growth and success . chief among these factors was an emphasis on quality of merchandise over less desirable lower cost wares 4 at prices 10 to 40 percent below the manufactures suggested list prices 5 along with department store level services such as well informed salespeople merchandise guarantees and a liberal refund policy . 4 that same year the couple used their 8 000 savings to open a 9 600 square foot store in a second floor loft in port chester ny . they named it caldor a blending of their first names . specializing in name brand hard goods 6 such as home furnishings appliances electronics jewelry and sports equipment 7 for middle to upper income yet bargain conscious consumers . 2 their slogan where shopping is always a pleasure was more of a way of life for the caldor team . 5 carl bennett who had been working as a wholesale liquor salesman for a connecticut company was born and raised in retail . his father owned a small grocery store in greenwich ct where quality of merchandise and customer appreciation were key . bennett credits his father for teaching him the retail sensibilities that he used to guide his company throughout the years . 8 initial expansion edit with business growing steadily the original store was replaced in 1953 with an expanded location in port chester ny that also provided more modern amenities . 5 a second caldor was added in 1958 a 70 000 square foot store in norwalk ct. this year also marked caldor s introduction of apparel to its product line . 6 in 1961 with four locations caldor inc. went public with carl bennett serving as president director and chairman of the board and dorothy as treasure and director . carl s brother harry bennett served as vice president . that same year fire destroyed the norwalk store and all of its contents . 9 ever resourceful caldor continued to serve the norwalk community by operating out of three temporary stores close to the damaged outlet which was quickly being rebuilt . despite this set back that destroyed nearly seven months of inventory the company posted an increase in sales of approximately 43 % over the previous year . 10 accelerated growth edit by 1963 caldor had stores in peekskill ny riverside norwalk danbury and hamden ct in addition to the original location in port chester ny . staying true to its belief in the benefits of regionalization each new store was planned in close proximity to caldor s headquarters . in november of that year caldor s common stock which had split two for one in september began trading on the american stock exchange . 11 in 1966 caldor opened its 9th store . its management sales and executive board were also expanded in size and depth . 12 a report written that same year by the value line investment survey one of wall street s most influential investment advisory services recognized caldor as a company growing at a rate of advance faster than that of xerox corporation . 4 during the remainder of the 1960s and the 1970 the economy saw years of booming consumer consumption as well as contraction and recession . throughout these changing times and varied economic climates caldor continued to show healthy profits and expansion . 13 many caldor competitors such as w. t. grant e.j. korvette two guys and grand way stores did not fare as well . 1 in 1976 caldor took over seven stores formerly operated by the defunct w. t. grant giving caldor immediate access to locations that were already zoned for retail outlets and access to fast tracked expansion . according to bennett those stores became immediately profitable for caldor . 14 estate of thornton v. caldor inc. edit main article estate of thornton v. caldor inc. caldor was the subject of a lawsuit filed by former employee donald thornton who claimed he was fired by the company for refusing to work on sunday which was his sabbath day . thornton contended that by forcing him to work one sunday a month caldor was violating a connecticut state law that permitted him to observe his sabbath without opposition from his employer . caldor contended that the law was unconstitutional as it violated the establishment clause of the first amendment of the u.s. constitution . the lawsuit was filed in 1980 and eventually the case was heard before the united states supreme court wherein caldor s position was upheld . purchase by associated dry goods edit in 1981 associated dry goods adg owners of lord & taylor and other quality department stores purchased caldor inc. for 313 million . attracted to its growth potential and low debt the 63 store caldor chain was adg s first entry into the realm of discount retailing . bennett was retained under a 3 year contract and several other caldor executives were also brought on by adg . 13 14 carl bennett s retirement edit in march 1984 carl bennett announced that he would retire on may 31 of the following year after 33 years with the company he and his wife had founded with 8 000 and an idea . at the time of this announcement caldor had 100 stores and over 1 billion in sales . his three year contract up with associated dry goods bennett looked forward to retirement and spending time relaxing playing tennis reading a few new books and vacationing . 3 adg wanted bennett to stay as long as possible . after all said one corporate insider carl bennett is caldor . first bankruptcy edit in 1995 caldor filed for chapter 11 bankruptcy protection . 15 the chain found itself unable to compete with the lower prices and wider selection of such stores as wal mart which had acquired several former caldor stores causing a dramatic loss in sales . caldor also had trouble meeting its financial goals and losses mounted . shortly before filing for bankruptcy caldor had 1.2 billion in assets and 883 million in liabilities the lowest amount of assets and the highest amount of liabilities the company had since it was sold by may department stores in 1990 . after the bankruptcy caldor closed 10 under performing stores in 1996 . 1998 weekly ad printing error edit caldor relied heavily on a weekly multi color sales flyer to generate business . flyers were distributed weekly to advertise sales that ran from sunday through saturday . in november 1998 the company suffered a public relations embarrassment when its sales flyer featured a prominent photograph of two grinning boys playing the board game scrabble with the word rape spelled out in the center of the board buried amongst nonsense words . 11 million copies of the flyer were distributed to the public via an 85 newspaper distribution chain . caldor released a statement expressing its mystification over how the image was created and got past proofreaders . 16 17 second bankruptcy and liquidation edit in january 1998 caldor had 1.2 billion in liabilities and 949 million in assets one of the worst deficits the company ever had . a few months later caldor closed 12 underperforming stores mostly in the washington d.c. area . this along with the slow financial progress of the chain caused its secured creditors to move to force the chain into chapter 7 bankruptcy which would have forced the liquidation of the entire chain . the creditors felt that their shareholders would benefit more from the liquidation of the company than if they allowed it to remain in business . in addition caldor s stock was delisted on the new york stock exchange . caldor responded by seeking mediation to resolve the dispute but in january 1999 the company deduced that there was nothing they could do to save themselves . on january 9 caldor announced it would not place any more orders for nor would they accept shipments of new merchandise for their stores . thirteen days later the company announced it would begin winding down business and laid off all of their staff at the corporate headquarters in connecticut . 18 one day after that on january 23 1999 liquidation sales began at the remaining 145 stores . by april 1999 most of the caldor locations had sold off all their merchandise and closed their doors ; the last store to close did so on may 15 1999 . at the time of the liquidation caldor employed over 24 000 people . many caldor stores eventually were purchased by retailers such as competitors target kmart and wal mart . many metro new york caldor stores were bought by kohl s after the company s closure as part of kohl s entry into the new york retail market . caldor distinctives edit caldor was successful through several business practices which were distinct in their industry merchandise caldor continually carried quality national brands offered at discount prices that appealed to many who would normally be shopping in higher end department stores . 2 walter f. loeb a vice president and retailing analyst at morgan stanley is quoted in a 1980 new york times article as saying the company is in my opinion one of the really excellent upscale discounters that has an appeal not only to the budget minded blue collar worker but to the middle class white collar shopper too . 19 caldor never stocked closeouts or irregulars . their credo of the best available merchandise at the lowest possible price remained true throughout their history . 20 regionalism new stores were located within a day s travel from caldor s corporate headquarters and its distribution center allowing for closely controlled costs and minimized inventory expenses . single advertising and promotional campaigns could cover multiple stores . executive supervision and transfer of employees was also made simpler . 20 store environment the interior of each caldor store was designed to look more like a department store than a discounter and many were even designed by the same firms used by more up scale retail environments . 2 they featured wide aisles bright lighting and large colorful display treatment 20 and were typically remodeled every 6 years . 2 training programs early on bennett understood the importance of knowledgeable salesclerks and their impact on purchases customer satisfaction and on reducing the number of