Harolds files for bankruptcy

[metro]

Harold’s Stores files bankruptcy in Oklahoma
ECONOMY takes toll on clothier
Comments 1BY RICHARD MIZE
November 8, 2008

Harold’s Stores Inc. and related companies filed for Chapter 11 bankruptcy protection Friday in Oklahoma City.


Harold’s, founded in 1948 in Norman but now based in Dallas, has stores in Oklahoma City, Norman and Tulsa.

The company estimated assets and liabilities between $10 million and $50 million in the filings.

Stores were open Friday. A woman who answered at the 50 Penn Place location said Harold’s stores would be open today.

Ron Staffieri, Harold’s chief executive officer, could not be reached late Friday.

Harold’s has stores in 19 states, mostly in the South, West and Midwest. Harold’s has stopped taking online orders, its Web site said.

Stores in Oklahoma include locations at Campus Corner in Norman, 50 Penn Place and Rockwell Plaza in Oklahoma City and The Farm Shopping Center and Utica Square in Tulsa.

The highest-profile store in Oklahoma City is at 50 Penn Place. A commercial real estate broker familiar with the property said the loss of Harold’s would be devastating for the retail section of the combination mall-office tower.

In addition to Harold’s Stores Inc., Harold’s Direct Inc., Harold’s Financial Corp., HSTX Inc., Harold’s of Jackson Inc., Harold’s Limited Partner Inc. and Harold’s Stores of Texas LP also filed bankruptcy.

[progressiveboy]

Harold’s Stores files bankruptcy in Oklahoma
ECONOMY takes toll on clothier
Comments 1BY RICHARD MIZE
November 8, 2008

Harold’s Stores Inc. and related companies filed for Chapter 11 bankruptcy protection Friday in Oklahoma City.


Harold’s, founded in 1948 in Norman but now based in Dallas, has stores in Oklahoma City, Norman and Tulsa.

The company estimated assets and liabilities between $10 million and $50 million in the filings.

Stores were open Friday. A woman who answered at the 50 Penn Place location said Harold’s stores would be open today.

Ron Staffieri, Harold’s chief executive officer, could not be reached late Friday.

Harold’s has stores in 19 states, mostly in the South, West and Midwest. Harold’s has stopped taking online orders, its Web site said.

Stores in Oklahoma include locations at Campus Corner in Norman, 50 Penn Place and Rockwell Plaza in Oklahoma City and The Farm Shopping Center and Utica Square in Tulsa.

The highest-profile store in Oklahoma City is at 50 Penn Place. A commercial real estate broker familiar with the property said the loss of Harold’s would be devastating for the retail section of the combination mall-office tower.

In addition to Harold’s Stores Inc., Harold’s Direct Inc., Harold’s Financial Corp., HSTX Inc., Harold’s of Jackson Inc., Harold’s Limited Partner Inc. and Harold’s Stores of Texas LP also filed bankruptcy.

Today's Dallas Morning News in the Business Section stated they were going to "liquidate" all the stores. I think this sounds more like Chapter 7 instead of 11 however, I could be wrong?

[yukong]

As I read the story in the DMN, they have told employees there is "may be a chance to keep a few stores open but that the company is proceeding toward liquidation."

Doesn't sound good at all. Hate to see such an Oklahoma and Norman institution go away. But they have apparently been having serious financial trouble for several years. Hope the few stores left open are the Norman and 50 Penn locations. But I have my doubts.

[OKCTalker]

I went to 50 Penn today to buy some trousers, and hadn't seen the paper. I asked about all of the bright yellow signs reading "ALL SALES FINAL," and was told that they filed for Chapter 11 yesterday, and were liquidating because no buyer was likely to come along. Conflicting stories on whether they'll close in three months or 1/15/2009.

Everything is marked down 30%.

As for 50 Penn Place, it's starting to look like they're going the way of Crossroads Mall. Two reasons: 1) Balliet's is next to go, with Bob Benham all but ready to move to Classen Curve, and that would leave Full Circle Bookstore as the last quality retailer there; 2) The building is a "tenants-in-common" building, and I'll defer to Pete B. on this, but all decisions require 100% agreement among the tenants, including the decision to sell. A sale opportunity was lost a few months ago, but I don't recall the specifics except for Sperry Van Ness was involved.

I'll miss Harold's for what they were 20+ years ago, but not for what they've been since. There's a need for something between department stores like Dillard's and the boutiques such as Teena Hicks, Ooley's, Steven Giles, S.J. Haggard, etc.

[bluedogok]

It is sad to see such institutions close, just like when Orbach's closed but that was partly a family issue. I used to shop at Harold's a bunch 15-20 years ago and went to the Warehouse Sale regularly. As I got older and "larger" they just had less and less for me to buy there. I know the Outlet Store here in Austin closed about a year ago. Dillards is pretty much my regular shopping since they have a decent sized Big & Tall department.

[FritterGirl]

Harold's hasn't been the same since the family sold out several years ago to a larger corporate entity in the interest of expanding. They also really went through an identity-crisis of sorts, changing their signature brands for trendier, younger stuff that never really hit the mark with the college crowd - and certainly didn't do much to keep their adult audience. Their quality (at least on the women's side) dropped significantly, too, over the past years. I'll still drop in the outlet from time to time to see what bargains are to be had, but haven't shopped in their main store in years.

It's really sad to see. Kind of the true closing of the "old school" clothing of my youth.

[jbrown84]

Speaking of "old school", I remember when I was in high school, their attempt to compete with A&F and American Eagle, Old School Clothing Co., had gained some traction with the preppy types in my school, but it didn't take off. I think I went in their store at 50 Penn once, but never bought anything from Old School.

[Kerry]

Texas: Where Oklahoma companies go to die.

[jbrown84]

Fleming
Kerr-McGee (sorta)
Harold's
Citgo

[Pete]

Classic case of over expansion and departure from the original vision -- and failure to adapt.

Yet another piece of my history is thus down the drain... Harold's was an institution for my entire lifetime.

[metro]

Texas: Where Oklahoma companies go to die.

Isn't that the truth. They get greedy and run our good institutions into the ground.

[OKCTalker]

Updated story on Page 1 of today's DO saying that they're closing, but the end of the article said, "Harold's closing sales are under way at all stores." I confirmed with a sales guy this morning that they're intending to close around January 15th.

[Stinger]

What were the sale prices like when you were there? I went on Sunday and most stuff was 30-40% off. I got quite a load, but will go back as more reductions are made.

[jbrown84]

It would be nice if the original family, or someone else would buy the original on Campus Corner and keep it open in some fashion.

[Richard at Remax]

I could see a McCalls, like in edmond, down there in norman

[betts]

Classic case of over expansion and departure from the original vision -- and failure to adapt.

Yet another piece of my history is thus down the drain... Harold's was an institution for my entire lifetime.

I think failure to adapt is the biggest problem here. They weren't selling clothes enough people wanted to wear. It's sad, but I never shopped there, and my kids had zero interest in doing so as well.

[OKCTalker]

Pete - This would be an interesting case study. My guess is that the second generation (founder Harold Powell's children) didn't have his drive, and when the first challenge came (probably the 1980s bust), instead of cutting costs to follow declining revenues, they cut quality to prop up revenues. That would have led to their core customers leaving, and prompting the growth of smaller, boutique men's clothing shops in town, most of which are owned by or employ former Harold's sales guys. The family sold out and that was the nail in the coffin. Like jbrown84 said, it would be interesting to see if one of Harold Powell's grandchildren has the fire in the belly to buy the trade name and make a run at rebulding the family business. As the saying goes, "shirtsleeves to shirtsleeves in three generations," and no irony lost in that we're talking about an apparel shop.

[OKCTalker]

Append - there are other high-quality, multi-generational retail dynasties in OKC that seem to do just fine, B.C. Clark Jewelers being the first that comes to mind.

[boomer10]

I could see a McCalls, like in edmond, down there in norman

McCalls used to be in Norman, if not headquartered there. I attended OU from 75-80...I believe McCalls was downtown...

[jbrown84]

I'm sure McCall's and Parkway took away a lot of the business that would come from Edmond.

Didn't the family sell out a while ago, at which time the company moved to Dallas?

[Stinger]

Did anyone go to Harold's over the weekend? Curious if they've had any further price reductions since 30-40% the previous weekend.

[flips]

Did anyone go to Harold's over the weekend? Curious if they've had any further price reductions since 30-40% the previous weekend.

I was at the one in Dallas, and the prices were still 30-40% off.

[OKCTalker]

As of this morning everything is 30 - 50% off.