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Broadway Stores
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Broadway Stores, Inc., was an American Holding company of department stores based in Southern California. Known through its history as Carter Hawley Hale Stores and Broadway Hale Stores over time, it acquired other retail store chains in regions outside its California home base and became in certain retail sectors a regional and national retailer in the 1970s and 1980s. The company was able to survive takeover attempts in 1984 and 1986, and also a Chapter 11 bankruptcy filing in 1991 by selling off most of its assets until August 1995 when its banks refused to advance enough additional credit in order for the company to be able to pay off suppliers. At that point, the company sold itself to Federated Department Stores for $1.6 billion (~$3 billion in 2024) with the acquisition being completed on October 12, 1995.

Key Information

History

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Early history

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In 1950, as Los Angeles began to grow in population very rapidly and assumed dominance within the state, the fast-growing The Broadway department stores based there negotiated an all-stock merger with Hale Bros. Stores, Inc. Edward W. Carter, president of The Broadway, became the president of Broadway-Hale Stores.

The newly enlarged company began to grow aggressively with its Broadway stores expanding south to San Diego in 1961 and east to Phoenix, Arizona, in 1968. A mail order firm named the Sunset House[1][2][3][4][5][6][7] was also acquired in 1968.[8][9] In 1970, the company acquired Emporium-Capwell Co.,[10][11] itself the holding company for Emporium in San Francisco (and suburbs) and Capwell's (H.C. Capwell Co.) in Oakland (and suburbs) and keeping their respective names on the stores in the San Francisco Bay Area.

Also in 1969, Broadway-Hale acquired the then 3-unit Neiman Marcus specialty department store, based in Dallas, Texas,[12][13] and the Walden Book Co. (known more commonly as Waldenbooks)[14] and began to actively grow those businesses, nationwide.

1970s–1980s

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Carter Hawley Hale logo (c. 1974)

In 1972, Prentis Hale retired as chairman, Edward Carter assumed the chairmanship and Philip M. Hawley (who started as a women's sportswear buyer in 1958) became company president. In 1974, in a news release it states, CHH stated that to reflect the executives' contributions, the corporate parent was adopting the name Carter Hawley Hale Stores, Inc.[15] The new name was a major tongue twister, and stock analysts sometimes called it "Ego, Inc."[citation needed] The Wall Street Journal reported in 1984 that some critics accused Carter and Hawley on being on an "ego trip".[16] In 1977, Carter retired. Hawley was appointed CEO.[17]

The company continued to be an active acquirer, in 1972 acquiring Bergdorf Goodman in New York,[18][19] and Holt Renfrew of Montreal, Canada.[20] After attempting an ill-fated, unsuccessful hostile takeover of Marshall Field in 1977,[21][22][23][24] the company acquired the venerable but tattered John Wanamaker's of Philadelphia for $60 million (cash) in April 1978.[25][26] That was followed by a stock swap for Thalhimers of Richmond, Virginia in August 1978.[27] Contempo Casuals was a May 1979, takeover.[28] Emporium and Capwell's were merged to form a unified San Francisco Bay-area presence as Emporium-Capwell in 1980,[29][30] Weinstock's moved into Utah and Reno, Nevada, and The Broadway stores were split into separate Los Angeles and Phoenix–based divisions as the chain expanded into Colorado, New Mexico and Nevada. Sales increased, but profits did not. The saying on Wall Street was "God gave them Southern California, and they blew it", which The Wall Street Journal had attributed to Monroe H. Greenstein, a retailing analyst at Bear Stearns.[16]

In 1980, CHH decided to get rid of units which catered to the lower economic markets. The first to go was the Sunset House mail order unit which also operated novelty shops in shopping malls.[31][32] CHH found a buyer that only wanted the mail order unit and the mall stores were closed in 1981.[33]

Faced with continuing poor results, and two hostile takeover attempts by The Limited in 1984[34] and 1986,[35] the company, still led by Phillip M. Hawley, reacted by first selling Waldenbooks to Kmart in 1984,[36] Holt Renfrew to the Weston Family in April 1986,[37][38] Wanamaker's to A. Alfred Taubman's Woodward & Lothrop in January 1987[39] and then splitting off the desirable specialty store business as Neiman-Marcus Group, Inc. (encompassing the Neiman-Marcus, Bergdorf Goodman and Contempo Casuals stores). The company that had rescued Carter Hawley Hale from The Limited takeover-attempts, theater owner/soft-drink bottler-cum-investment company General Cinema (later renamed Harcourt General), assumed majority ownership of Neiman-Marcus Group in 1986 as its reward.[40] Thalhimer's was sold to May Department Stores in December 1990.[41]

1990s and the end

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From its heights in 1984 as the sixth-largest department store chain firm in the United States, CHH fell into Chapter 11 bankruptcy in 1991.[42][43] Besides the financial problems of surviving the 1980s era of hostile takeovers, the main California department store business had faltered because of increasing competition from Nordstrom.

In 1992, after one and one-half years of bankruptcy negotiations, financier Sam Zell and his Zell/Chilmark Fund completed the reorganization of the newly renamed Broadway Stores, Inc., taking a 75 percent stake.[44] The company finally emerged from bankruptcy in October 1992 and Hawley promptly announced his retirement.[45] In early 1993, the three Utah-based Weinstock's stores were closed and the store leases were sold to Mervyns,[46] Dillard's,[47] and ZCMI.[48]

After the takeover by Zell, Hawley was replaced as CEO by David Dworkin.[49] Dworkin tried to slow the outward flow of cash from the company by remodeling stores and streamlining operations.[50] In June 1994, the shareholders of Carter Hawley Hale Stores, Inc. voted to change the name of the company to Broadway Stores, Inc.[51] to symbolize a change in the ailing company, but it was too late to make a difference.

The final blow came on August 8, 1995, when the firm's lenders announced they would not advance the company any additional funds – which were needed to pay suppliers for new, as well as existing inventory.[52][53] A week later, the firm announced its sale to Federated Department Stores which effectively marked the beginning of the end to the remnant nameplates that the stores had operated under.[54][55]

The newly streamlined company was short-lived, however. In August 1995, Federated Department Stores agreed to acquire Broadway Stores. The acquisition was completed on October 12. The chain was dissolved in 1996 as Federated consolidated the former Broadway, Emporium and Weinstock's stores, along with its own Macy's California and Bullock's chains (acquired in 1994),[56] to form Macy's West.[57] Several duplicative units were sold to Sears or shuttered, while Federated also used the real estate of five stores (Emporium-Capwell Stanford Shopping Center, Broadway Sherman Oaks Fashion Square, Broadway Century City Shopping Center, Broadway Beverly Center, and Broadway Fashion Island Newport Beach) to finally bring its Bloomingdale's chain to the West Coast.[58]

On September 28, 2006, Emporium-Capwell's Market Street flagship was redeveloped to house another Bloomingdale's location as well as an expansion of the adjoining shopping center Westfield San Francisco Centre.[59] In addition, the one-time CHH Corporate Offices in the former Superior Oil Company Building at 550 South Flower Street in Los Angeles, right next door to The California Club (of which Carter and Hawley were members), were converted into a three-star boutique hotel called "The Standard."[60]

Selected divisions

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Broadway

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The Broadway division was the largest department store division within the company. The division could trace its roots to the Broadway Department Store that was founded in Los Angeles by Arthur Letts, Sr. in 1896. By 1992, the division expanded throughout Southern California and started expanded outside of California. In 1979, the division was split into the Phoenix-based Broadway Southwest to handle the out-of-state stores and the Los Angeles–based Broadway Southern California to handle the stores within California. The two separate divisions were consolidated in 1992 after many of the non-Californian stores were closed. At the time of its parent acquisition by Federated, Broadway had 52 stores.

Hale's

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Former Hale's store in San Francisco at 5th and Market in 2008

The chain's beginnings date from The Criterion store founded in Sacramento, California, in 1880 by the Hale Brothers, Prentis Cobb Hale I and Marshal Hale and adopted their name later the same year. By 1936, scion Prentis Cobb Hale worked as a stock clerk in the family store after he graduated from Stanford University. The company had expanded throughout Northern California, including a location at 989 Market Street in San Francisco by 1902 (replaced in 1912 by a location at 901 Market Street). By 1949, the company had acquired its Sacramento-based rival Weinstock, Lubin & Co. Weinstock's was kept as a separate brand. Paradoxically, the Hale brand was later absorbed by the Weinstock's brand in Northern California.

Emporium-Capwell

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Emporium-Capwell was created by the 1927 merger of the San Francisco–based Emporium Company and the Oakland-based H.C. Capwell Company.[61][62] This company kept the two brands separate and had opened many Emporium and Capwell stores respectively throughout the San Francisco Bay Area prior to its acquisition by Broadway-Hale in 1970. Under Carter Hawley Hale, there were 12 Emporiums and six Capwell stores when the two brands were merged to form the single Emporium-Capwell brand in 1980. There were 22 Emporium-Capwell stores left at the time of its parent's acquisition by Federated.

Weinstock's

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Weinstock's could trace its origins to the Sacramento-based Weinstock, Lubin & Co. There were 8 Weinstock's store left at the time of its parent's acquisition by Federated.

ERISA case

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Carter Hawley Hale also is known as a famous case study regarding its retirement plans. Because it offered its employees a profit-sharing plan, and not a retirement fund, under the Federal Employee Retirement Income Security Act (ERISA) pension plan law, the trustee was under no obligation to diversify the fund. Because of the nondiversification and continued purchase of Carter Hawley Hale stock, the employee fund soon was stuck with a precipitous loss in value. Its employees' low morale contributed to its problems.[63][42]

Advertising

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The longtime print and television-radio media advertising slogans during the 1970s until The Broadway closed for good were "It's at the Broadway" (radio and television only) and "The Broadway is Southern California" (all media). A baritone male voice-over announcer provided the verbalized slogan.

See also

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References

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
Broadway Stores, Inc. was a major American department store chain based in , renowned for its mid-range fashion, home goods, and apparel offerings, which operated from its founding in 1896 until its acquisition and dissolution in the mid-1990s. Established on February 24, 1896, by English immigrant , Sr., as a modest 4,000-square-foot shop named The Broadway at the corner of 4th and Broadway streets in , the retailer quickly expanded amid the region's population boom. Incorporated in 1919 as The Broadway Department Store, it grew through strategic suburban developments under leaders like Edward W. Carter, who became president in 1946 at age 34 and pioneered early shopping centers such as the Crenshaw Center in 1947—one of the first malls with dual anchors. By 1964, the chain had 28 stores in , with annual sales reaching $219 million (equivalent to about $2.3 billion in 2024 dollars), and it had merged with Hale Brothers in 1950 to form Broadway-Hale Stores, Inc., extending its reach to . The company underwent significant transformations in the late 20th century, renaming to Carter Hawley Hale Stores, Inc., in 1974 to honor key executives Edward Carter, Philip Hawley, and Eli Hale, and aggressively acquiring brands like Emporium Capwell, Neiman Marcus, Bergdorf Goodman, John Wanamaker, and Thalhimers, making it the nation's fourth-largest department store chain by 1980 with $2.4 billion in sales (about $9.1 billion in 2024 dollars). However, facing a retail downturn, high debt, and competition, it reported a $26 million loss in 1990, sold off assets like Thalhimers for $317 million, and filed for Chapter 11 bankruptcy in February 1991 with $2.86 billion in annual sales. Emerging from bankruptcy in October 1992 under investor Sam Zell's 75% ownership following a $50 million infusion, it reverted to Broadway Stores, Inc., in 1994 before being acquired by Federated Department Stores in August 1995 for approximately $1.6 billion in stock and debt assumption, leading to the conversion of most locations to Macy's or Bloomingdale's and the erasure of the Broadway name by 1996.

History

Founding and early development (1896–1949)

Broadway Stores originated as The Broadway Department Store, founded on February 24, 1896, by Sr., an English immigrant who had arrived in from earlier that year. Letts acquired a failing store at the southwest corner of 4th Street and Broadway in , transforming the modest 4,000-square-foot space into a retailer focused on affordable merchandise for cost-conscious customers, emphasizing fixed prices and generous return policies to build customer trust. Under Letts' leadership, the store experienced rapid early growth, incorporating as The Broadway Department Store in in 1919 before reincorporating in in 1926 for more favorable business laws. A key aspect of this expansion involved Letts' investments, including his 1919 purchase of over 400 acres of the former Wolfskill Ranch, which he developed into the upscale Holmby Hills neighborhood in what is now Beverly Hills, enhancing his influence in Southern 's commercial landscape. The store also became a of the emerging Broadway retail district, drawing shoppers with its diverse offerings in , , and . Architectural enhancements solidified The Broadway's prominence, particularly with the completion of a 10-story addition on Fourth Street in 1924, which expanded the flagship store to over 128,000 square feet and positioned it as an anchor for shopping. This expansion occurred amid Letts' passing on May 18, 1923, after which his estate sold the business in 1926 to a group of executives led by son-in-law Malcolm McNaghten, who became president and steered continued local operations. The store maintained its focus on community-oriented features, such as beauty salons and a rooftop , which provided social gathering spaces alongside merchandise departments. During the and , The Broadway adapted to economic challenges by emphasizing practical, diverse merchandise like apparel and home essentials, while sales grew from $16.2 million in 1939 to $31.7 million in 1945, reflecting resilience and local dominance in retail. Further branch expansions, such as the 1931 acquisition and renaming of B.H. Dyas' Hollywood store as Broadway-Hollywood (230,000 square feet) and the 1940 opening of Broadway-Pasadena (95,000 square feet), extended its reach without venturing beyond regional markets. By 1949, preparations for broader growth included selling shares to Hale Brothers Stores, Inc., leading to their 1950 merger.

Mergers and national expansion (1950–1974)

In 1950, The Broadway merged with Hale Brothers Stores, Inc., a prominent chain founded in 1880, to form Broadway-Hale Stores, Inc., thereby extending its operations northward from its base and establishing a stronger regional footprint in the West. The merger, completed through an all-stock transaction, integrated Hale Brothers' established locations in cities such as , Oakland, Sacramento, and San Jose, allowing Broadway-Hale to diversify beyond while maintaining operational synergies in apparel and general merchandise retailing. This consolidation marked the beginning of Broadway-Hale's aggressive expansion strategy, transforming it from a local chain into a multi-regional player. The late 1960s saw Broadway-Hale pursue diversification into luxury and specialty retail segments. In 1969, the company acquired the Neiman-Marcus Company, a Dallas-based luxury chain with three upscale locations known for high-end fashion and specialty goods, for approximately $40 million in stock and cash, enabling entry into the national luxury market. That same year, Broadway-Hale purchased Walden Book Company, Inc., the largest U.S. bookstore chain at the time with 53 company-owned stores and 71 leased departments in major retailers generating $4.4 million in annual sales, broadening its portfolio into book retailing and non-apparel categories. These acquisitions, led by Chairman Edward W. Carter, positioned Broadway-Hale as a more versatile amid growing competition in traditional s. Further strengthening its California dominance, Broadway-Hale completed its merger with Emporium Capwell Co. in 1970, a San Francisco-based retailer with established operations across the Bay Area, at a total cost exceeding $72 million following prior partial investments. The deal integrated Emporium Capwell's network, which had grown to around 22 stores by that point, enhancing Broadway-Hale's market share in Northern California and creating operational efficiencies through shared supply chains and regional synergies. In 1972, the company expanded eastward by acquiring Bergdorf Goodman, New York's iconic Fifth Avenue specialty retailer with a single flagship store boasting $33 million in annual sales, for $12.6 million in stock; the purchase, approved by the Federal Trade Commission after concerns over market concentration, introduced Broadway-Hale to high-end East Coast fashion retail. By 1974, amid these transformative deals, Broadway-Hale underwent a management-led and to Carter Hawley Hale Stores, Inc., honoring Chairman Edward W. Carter and President Philip M. Hawley, while initiating listings on major stock exchanges to support further growth. This period solidified the company's national presence, evolving it into one of the largest U.S. operators with diversified holdings across luxury, regional, and specialty formats.

Peak under Carter Hawley Hale (1975–1989)

Under the ownership of Carter Hawley Hale Stores, Inc., the company experienced significant growth through strategic acquisitions in 1978 that expanded its footprint beyond the West Coast. The acquisition of the chain, a historic Philadelphia-based operator with 15 locations and annual sales of approximately $280 million, was completed for $60 million, marking the company's entry into the East Coast market. Shortly thereafter, Carter Hawley Hale acquired Thalhimer Brothers, a Richmond, -based retailer with 26 stores across , the , and generating about $140 million in sales, through a stock swap exchanging 0.975 shares of Carter Hawley Hale for each Thalhimer share. These moves diversified the portfolio into new regional markets and boosted overall operations toward $2 billion in annual sales by the end of the year. Throughout the 1980s, Carter Hawley Hale pursued diversification amid a booming retail sector, venturing into catalogs, for store properties, and specialty retail formats to complement its core business. The company expanded its high-fashion and youth-oriented specialty chains, such as Contempo Casuals for apparel and for books, which together represented about 34% of operations by the mid-1980s and helped capture emerging consumer trends in mall-based shopping. Centralized initiatives, including unified buying, private-label brands, and property investments, improved margins and supported store remodels during a period of . By the mid-1980s, the retailer operated over 300 locations across multiple states, including more than 135 department stores, with annual sales surpassing $3.6 billion in 1983 and approaching $4 billion by 1985. This period of peak expansion faced external pressures from hostile takeover attempts, notably in 1984 when The Limited Inc. launched a $1.1 billion cash for over 50% of Carter Hawley Hale's shares at a premium. In response, the company employed aggressive defensive tactics, including a self- to repurchase up to 15 million shares (about 51% of its stock) at an average price of $26.20, which was later halted by a federal court order following a Securities and Exchange Commission lawsuit alleging violations of rules. To bolster its position, Carter Hawley Hale sold 38.6% of its voting securities to General Cinema Corp. for $160 million, effectively creating a that thwarted the bid; this "Pac-Man"-style countermeasure, combined with the repurchase effort, preserved independence but incurred significant debt. Internal shifts in 1984 refocused operations on core s amid these challenges. Edward W. Carter, who had led the company since 1957 and overseen its transformation into a national player, retired as chairman, passing leadership to Philip M. Hawley, who emphasized streamlining the "confederation of retailers" by prioritizing efficiency over further diversification. This transition, occurring shortly after the takeover defense, aimed to stabilize finances and capitalize on the retail boom, though it highlighted growing pressures from leveraged defenses.

Decline, bankruptcy, and dissolution (1990–1996)

In the early 1990s, Broadway Stores, then operating as Carter Hawley Hale Stores Inc., faced intensifying competition from discount retailers such as and Target, as well as value-oriented specialty chains like and J.C. Penney, which eroded its in apparel and general merchandise. These competitors offered lower-priced basics that appealed to budget-conscious consumers amid a broader decline in apparel spending as a percentage of family budgets, with women's apparel—comprising about 65% of sales—particularly affected. The shift away from higher-end toward affordable options led to stagnant same-store sales for Broadway and contributed to its overall financial strain, as the company struggled to adapt to changing retail dynamics. On February 11, 1991, Carter Hawley Hale filed for Chapter 11 bankruptcy protection, listing assets of $1.2 billion and liabilities of $1.38 billion, marking it as one of the largest retail bankruptcies at the time. The filing was driven by heavy debt from prior takeover defenses and a weak economy, with annual debt payments reaching $174 million in fiscal 1990, exacerbating losses of $26 million that year. As part of the restructuring, the company closed several underperforming stores and reduced its workforce by approximately 1,000 positions, or 3.3% of its employees, to achieve annual savings of about $75 million. The reorganization plan, approved in 1992, was backed by investor Sam Zell's Zell/Chilmark Fund, which acquired a 75% stake in the restructured company by infusing $50 million in new capital and assuming $480 million in debt. This allowed Carter Hawley Hale to emerge from bankruptcy on October 8, 1992, after 20 months of protection, with Zell/Chilmark holding the majority of the 35 million common shares issued to creditors and investors. In June 1994, shareholders voted to rename the company Broadway Stores Inc., reflecting a focus on its core Broadway brand and signaling a fresh start post-restructuring. Despite these efforts, ongoing sales challenges persisted, leading to the company's sale to Federated Department Stores on August 15, 1995, for $1.6 billion in a deal that included its 82 stores operating under names like The Broadway, Emporium-Capwell, and Weinstock's. The acquisition was completed on October 12, 1995, after which Federated initiated the dissolution of Broadway Stores Inc. as an independent entity. By early 1996, Federated converted the majority of the acquired stores—approximately 56—to Macy's West, while closing or selling off about 10 others and rebranding five as , effectively ending the Broadway brand.

Divisions

The Broadway

The Broadway served as the flagship division of Broadway Stores, Inc., operating primarily in with a focus on mid-range apparel, home goods, and targeted at middle-class consumers. By the time of its acquisition by Federated Department Stores in 1995, the division encompassed 52 stores, with 41 in (concentrated in the metropolitan area) and the remainder in neighboring states like , , , and . These outlets were typically anchored in urban and suburban shopping malls, offering accessible pricing and a broad selection to compete in the region's growing retail landscape. The division's origins traced back to the 1896 founding of its flagship store by Sr., which began as a modest 4,000-square-foot shop at Fourth and Broadway streets but rapidly expanded into a multi-level emporium spanning several city blocks. By the early , the flagship had grown to include extensive departments for , furnishings, and household items, with signature features such as the Terrace Room providing casual dining amid the experience. This evolution reflected the store's adaptation to 's booming commercial district, where it became a central hub for local shoppers until suburban migration prompted a shift in focus during the mid-20th century. Following the 1950 merger that formed Broadway-Hale Stores, Inc., The Broadway division integrated with Hale Bros. in , establishing cross-regional supply chains that streamlined merchandise distribution and inventory management across the state. This operational synergy supported The Broadway's "value luxury" positioning, offering quality goods at moderate prices to differentiate from upscale competitors like , which catered to higher-end clientele with premium selections. The approach emphasized affordable elegance in apparel and home decor, appealing to a wider demographic in Southern California's expanding suburbs. Store designs under The Broadway varied by era, with older downtown and freestanding locations incorporating art deco-inspired elements such as geometric facades and streamlined interiors to evoke modernity in the and . Expansions in the and shifted toward contemporary mall anchors, featuring open layouts, cores, and signature "stacked block" exteriors—like the 1970 Riverside store—to integrate seamlessly with enclosed shopping centers such as Tyler Galleria and . These adaptations prioritized customer flow and visual appeal, enhancing the division's role as a key retail anchor in Southern California's suburban developments.

Hale's

Hale's was acquired through the 1950 merger between The Broadway Department Stores and Hale Bros. Stores, Inc., forming Broadway-Hale Stores, Inc., with Hale Bros. contributing approximately 12 stores primarily in the and Sacramento areas of . As a more conservative, full-service chain, Hale's emphasized personalized and catered to middle-class families in urban and emerging suburban communities. The chain focused on family-oriented merchandise, including furniture, housewares, small appliances, toys, and paints, alongside traditional apparel and accessories, positioning it as a one-stop destination for household needs. Following the post-World War II suburban boom in the , key Hale's locations shifted toward integration in regional malls, such as expansions in the and Sacramento suburbs, to serve growing residential areas. By the , under the Broadway-Hale umbrella and the 1974 rebranding to Carter Hawley Hale Stores, Hale's underwent gradual consolidation and efforts that diminished its standalone identity, with many stores adopting unified Broadway-Hale signage and operations. The Hale's brand was largely discontinued by the late , with remaining stores rebranded under Broadway-Hale or closed, such as the final Sacramento location in October 1976. Operating on a smaller scale than the core Southern California-based Broadway division, Hale's maintained strong local community ties through longstanding family ownership roots dating to and emphasized holiday promotions, such as elaborate displays and events, to foster regional loyalty.

Emporium-Capwell

The Emporium-Capwell division represented a key upscale retail operation in the following its acquisition by Broadway-Hale Stores in 1970, which added 13 stores to the company's portfolio and solidified its presence in . Centered primarily in the urban core of and surrounding suburbs, the division included prominent locations such as the Emporium store at , a major suburban anchor opened in 1952 that served as a for modern shopping experiences with extensive parking and air-conditioned facilities. By the mid-1990s, the network had expanded to 22 stores through organic growth, though it faced challenges leading to the 1995 transition under Federated Department Stores. Positioned as a higher-end department store chain, Emporium-Capwell differentiated itself from discount-oriented competitors by emphasizing designer apparel, fine jewelry, and gourmet food selections, appealing to affluent urban and suburban shoppers in the Bay Area. Departments featured luxury items like precious metals, silver accessories, and high-quality watches, alongside curated fashion and small leather goods, which helped establish it as a destination for quality merchandise in a competitive regional market. This upscale focus contributed to its strategic value within the parent company, enhancing market share in premium retail segments during the 1970s and 1980s. The integration of the Capwell subsidiary, originally merged with Emporium in but operated separately until then, was formalized in when all stores adopted the unified Emporium-Capwell branding, streamlining operations across Bay Area sites including key Oakland locations like the historic flagship at 20th and Broadway. This consolidation preserved Capwell's footprint while aligning it with Emporium's broader network. During the 1980s, the division pursued expansions into Central Valley malls, such as new outlets in growing areas like Modesto and Stockton, to capture emerging suburban demand and extend its regional reach. Under Carter Hawley Hale ownership, Emporium-Capwell achieved operational synergies with the Hale's division, another chain, through centralized purchasing and clustered store placements that dominated the region's landscape. These efficiencies allowed for shared strategies and cost reductions, positioning the combined entities as a powerhouse in upscale retail across urban and inland markets without overlapping in core demographics.

Weinstock's

Weinstock's was a Sacramento-based chain that became a key division of Broadway Stores, serving inland and adjacent markets with a focus on mid-sized communities. Founded in 1874 by Polish-Jewish immigrants Harris Weinstock and David Lubin as a modest store on the corner of 10th and J Streets in Sacramento, the company grew into a regional retail powerhouse over the ensuing decades. By the early , it had expanded to multiple locations, including a store at 11th and K Streets modeled after the Printemps in , and was renowned for its extensive merchandise offerings, such as fine jewelry, menswear, and household goods. The chain also hosted community-oriented events, including fashion shows that showcased local talent and seasonal collections, fostering strong ties with Sacramento-area residents. In 1949, Weinstock, Lubin & Co. was acquired by Hale Brothers Stores, a San Francisco-based retailer, integrating it into the newly formed Broadway-Hale Stores conglomerate and marking the beginning of its alignment with broader retail networks. By the early 1990s, amid Carter Hawley Hale's financial challenges, Weinstock's operated approximately 12 stores primarily in Sacramento, the Central Valley, , and , emphasizing personalized in smaller urban and suburban settings compared to the larger urban footprints of other divisions. This smaller-scale approach allowed for tailored shopping experiences, such as in-store consultations for apparel and accessories, which helped maintain its reputation as a community staple in inland markets. The pivotal shift for Weinstock's within Broadway Stores occurred in 1991, when its operations were merged with the Emporium-Capwell division under a single management structure to streamline buying, merchandising, and distribution. This integration closed Weinstock's Sacramento distribution center, enabling shared supply chain efficiencies across the combined 34 stores in Northern and Central California, Nevada, and Utah, while preserving the Weinstock's brand name and local branding to retain customer loyalty. The move was part of broader cost-saving measures, projected to save $10 million annually, and positioned Weinstock's as a complementary inland counterpart to Emporium-Capwell's Bay Area focus. In 1992, following financier Sam Zell's investment in the company's bankruptcy reorganization, Weinstock's was further consolidated into Broadway Stores' unified operating unit based in Los Angeles, eliminating separate divisional headquarters and supporting ongoing operational synergies without altering its community-centric identity. Three Utah stores were closed in 1993, reducing the chain to about eight locations by the mid-1990s.

ERISA profit-sharing litigation

The Carter Hawley Hale Profit Sharing and Savings Plan was established in 1953 to provide retirement benefits to employees across the company's divisions, including Broadway Stores, by allowing pretax contributions invested primarily in company stock, with employer matching contributions also directed toward shares. By the , the plan covered thousands of workers and had grown significantly, with participants able to contribute up to 12% of their pretax income, supplemented by company matches of at least 25 cents per dollar in the form of Carter Hawley Hale stock. This structure positioned the plan as a key employee benefit, fostering a sense of ownership as employee holdings approached 40% of the company's equity by the late . In the late , amid intense financial pressures from leveraged recapitalizations and defensive debt issuances—including $350 million in high-yield junk bonds to ward off hostile takeovers—Carter Hawley Hale's value began to erode sharply. Plan fiduciaries, including company executives, continued to direct nearly all employee contributions and exclusively into company between 1989 and 1991, despite evident risks to the firm's stability. This concentration exposed the plan to the company's deteriorating fortunes, resulting in losses exceeding $112 million by the time Carter Hawley Hale filed for Chapter 11 bankruptcy protection in February 1991; the became nearly worthless, wiping out approximately 92% of the plan's assets for around 14,000 participants. In November 1997, former employees Doris Presley and filed a class-action in the U.S. District Court for the Northern District of California (Presley v. Carter Hawley Hale Profit Sharing Plan, No. C-97-04316 SC), alleging breaches of fiduciary duties under the Employee Retirement Income Security Act (ERISA). The suit claimed that plan administrators violated ERISA's prudent rule by failing to diversify holdings away from securities during a period of foreseeable decline and by imprudently prioritizing company stock investments, which enriched executives through stock options while endangering employee retirement savings. Although no formal SEC investigation into the ERISA claims was documented, the case drew scrutiny to the fiduciaries' role in the plan's oversight. The litigation culminated in a court-approved settlement on , 2000, providing $36 million to the class of approximately 20,000 affected employees, with $22.5 million contributed by Broadway Stores (the reorganized successor entity) and $13.5 million from , the plan's former trustee. U.S. District Judge Samuel Conti ruled that the settlement addressed the alleged ERISA violations, including failures to monitor investments and diversify assets as required under 29 U.S.C. § 1104(a), emphasizing the fiduciaries' duty to act solely in participants' interests. This outcome underscored ERISA's standards for prudent management in defined-contribution plans, influencing subsequent corporate pension reforms by highlighting risks in employer-stock-heavy funds and prompting legislative debates on diversification mandates, such as proposed 10% caps on employer securities in plans. The scandal eroded employee trust during Carter Hawley Hale's bankruptcy proceedings, as the devastation of retirement nest eggs—many participants' primary savings—led to widespread demoralization, higher turnover rates, and challenges in retaining staff amid store closures and restructurings.

Bankruptcy reorganization and sale

Carter Hawley Hale Stores Inc. filed for Chapter 11 bankruptcy protection on February 11, 1991, in the United States Bankruptcy Court for the Central District of California, listing assets valued at $1.2 billion and liabilities of $1.38 billion. The filing was prompted by mounting debt from prior acquisitions and a sluggish retail environment, enabling the company to continue operations while restructuring approximately $1.2 billion in obligations through creditor negotiations and asset sales. As part of the rationalization efforts during the proceedings, the company closed approximately 15 underperforming stores to streamline operations and reduce overhead, securing $800 million in debtor-in-possession financing from a bank consortium led by Chemical Bank to support ongoing activities during the proceedings. In 1992, the bankruptcy court approved a reorganization plan that allowed the company to emerge from Chapter 11 after 20 months of protection. Under the plan, the Zell/Chilmark Fund, led by investor , invested $50 million in new capital and acquired a significant portion of the company's , obtaining approximately 75 percent ownership of the reorganized entity in exchange for providing fresh capital. This infusion enabled the reduction of overall debt levels and positioned Zell/Chilmark as the controlling shareholder, with unsecured creditors receiving about 18 percent of the equity and existing shareholders retaining a small stake. The plan emphasized operational efficiencies, including further inventory management and cost controls, to stabilize the retailer post-bankruptcy. To distance itself from legacy liabilities associated with the Carter Hawley Hale name and to focus on its core West Coast operations, the company rebranded as Broadway Stores Inc. in June 1994 following shareholder approval. The name change symbolized a fresh start, aligning the corporate identity more closely with its flagship Broadway banner and facilitating streamlined management of divisions like Emporium-Capwell and Weinstock's. Facing renewed financial pressures in the mid-1990s, including competitive challenges and economic slowdowns in , Broadway Stores negotiated its sale to Federated Department Stores Inc. in August 1995 for a total value of $1.6 billion, comprising stock issuance and assumption of debt. The deal, approved by shareholders and regulators, involved Federated acquiring all outstanding shares through an exchange ratio of 0.27 shares of Federated stock per Broadway share, plus the transfer of operating leases for the majority of stores to ensure continuity. Employee transitions were managed through retention offers for key staff at retained locations, though the acquisition led to some layoffs at and non-converted sites. The transaction closed on October 12, 1995, marking the end of Broadway as an independent entity. The dissolution of Broadway Stores Inc. occurred throughout 1996, with Federated consolidating operations by converting approximately 40 stores to the banner and closing or selling the remaining 10 locations by early in the year. Non-retail assets, including remaining holdings and ancillary operations, were liquidated through sales to third parties, allowing Federated to fully integrate the acquired portfolio into its West division and eliminate overlapping infrastructure. This process completed the wind-down of the Broadway brand, with final store conversions finalized by mid-1996.

Marketing and branding

Advertising campaigns

In the 1920s and 1930s, Broadway Department Store relied heavily on print advertising in newspapers to promote its offerings, focusing on affordability through fixed pricing policies and local appeal by tying promotions to community events and institutions. For instance, advertising displays highlighted collaborations with local institutions such as Winifred Pollard's Neighborhood School of Dancing, positioning the store as a central hub for residents. These campaigns appeared in local publications like the , emphasizing value-driven merchandise such as clothing and household goods to attract middle-class shoppers amid the growing retail landscape. Radio advertising became a key medium for Broadway in the 1940s and 1950s, extending the store's reach beyond print to broadcast promotions of seasonal sales and everyday affordability, often aired on regional stations to reinforce its role as a community-oriented retailer in post-war Southern California. Following the 1950 merger with Hale Bros. Stores to form Broadway-Hale Stores, the company expanded its promotional strategies into television during the 1960s, leveraging the medium's growth after the 1969 acquisition of Emporium Capwell to feature holiday specials on regional networks that showcased coordinated merchandise across divisions. By the 1970s and 1980s, under the Carter Hawley Hale Stores umbrella, Broadway coordinated multi-division advertising efforts that integrated print, television, and in-mall displays, including cross-promotions with acquired brands like Emporium to highlight unified fashion and home goods lines. These campaigns increasingly incorporated catalogs for nationwide reach and direct mail targeting loyal customers, with television spots emphasizing back-to-school and holiday themes to drive foot traffic to mall locations. Advertising budgets during this period supported expansive media placements, reflecting the company's peak retail presence before economic challenges emerged. In response to intensifying competition from discount retailers in the , Broadway shifted toward value-focused promotions, introducing rebates on major purchases and early loyalty programs to retain customers amid financial pressures leading to in 1991. These initiatives, such as mail-in rebates for appliances and apparel, aimed to underscore affordability while integrating with branding post-acquisition in 1995.

Slogans and promotions

Broadway Stores utilized memorable slogans to reinforce its position as a leading retailer in , emphasizing accessibility and regional identity. The phrase "It's at the Broadway" served as a key in radio and television advertisements from the until the chain's closure, highlighting the store's wide selection of merchandise. Another enduring , "The Broadway is ," was employed across print and broadcast media in the 1960s and 1980s, underscoring the company's deep ties to the local culture and landscape with a distinctive . Holiday traditions formed a cornerstone of Broadway's promotional efforts, fostering and seasonal excitement. From the through the , the chain participated in parades in , featuring elaborate floats that drew crowds and promoted store offerings. In-store displays became a beloved annual feature, transforming sections of flagship locations into festive wonderlands with interactive visits to encourage family shopping. In the and , Broadway innovated with promotions that blended , , and . The launch of its proprietary in the mid- facilitated easier purchases and loyalty among customers, coinciding with expanded store renovations. , often sponsored by the chain, showcased contemporary styles at back-to-school events and holiday galas, such as the 1967 college presentations that highlighted youth trends. Tie-ins with Hollywood events included themed displays and celebrity appearances, capitalizing on the region's industry to attract trend-conscious shoppers. Following the 1969 acquisition of Emporium-Capwell, Broadway adapted slogans for its divisions to maintain brand cohesion while honoring regional heritage. Emporium-Capwell adopted "Doing it right" as a in the , promoting reliable service and quality fashion in ads for new store openings like Vallco Fashion Park. During the bankruptcy proceedings, Broadway ramped up clearance events to liquidate inventory and boost foot traffic amid financial distress. Post-Chapter 11 filing in 1991, aggressive sales on apparel and home goods helped stabilize operations temporarily, though the chain ultimately sold assets including its credit portfolio by 1995. These promotions, often advertised as "major markdowns," drew bargain hunters to stores across before the Federated acquisition.

Legacy

Integration into Macy's

Following the completion of Federated Department Stores' acquisition of Broadway Stores on October 12, 1995, the company immediately initiated the operational merger of the 82-store chain into its operations. In November 1995, Federated announced plans to convert 40 stores—31 carrying the Broadway name and nine Emporium or Weinstock's—to , prioritizing locations based on profitability and market position, with 22 of the Broadway conversions in . The rebranding extended to the remaining viable stores, with the 25 Broadway locations undergoing conversion over the following months, completing by late May 1996 as part of a broader effort to unify operations under the banner. In total, 56 Broadway stores were rebranded as , while five became , marking the chain's first expansion into under that name. The transition preserved much of the physical store layouts from Broadway while updating merchandise assortments to align with Macy's national standards, including expanded selections of upscale brands like Polo and , alongside retention of popular Broadway categories such as women's denim apparel. Vendor integrations drew on Macy's established national , enabling consolidated purchasing and streamlined distribution to former Broadway locations, which reduced redundancies in inventory management across . Employees from converting stores, numbering approximately 22,000 across the chain, were largely transferred to Macy's roles, with those at Macy's-bound sites receiving continued employment offers; only hundreds faced layoffs tied to the approximately 21 stores slated for closure or sale in early , supported by severance and job placement assistance. Select Broadway features, including enhanced cosmetics sections and fitting rooms in flagship conversions, were maintained during the initial years to ease customer familiarity. The former Broadway assets were fully consolidated into the Macy's West division, headquartered in , which oversaw all western U.S. operations and eliminated duplicate functions in overlapping markets by shuttering underperforming sites and rationalizing administrative roles. This regional structure facilitated operational efficiencies, such as unified merchandising and marketing, bolstering competitive position in the West. Over the long term, the integrated stores contributed to revenue growth for Macy's West through the 2000s and supported the division's expansion amid national brand unification efforts completed in 2006. In the , Macy's has closed numerous former Broadway sites as part of a strategy to shutter about 150 underperforming stores by 2027.

Site redevelopments and historical significance

Following the closure of Broadway Stores in 1996, many of its former sites underwent significant redevelopments, transforming historic retail spaces into mixed-use developments that blended commercial, residential, and entertainment elements. The flagship, originally located at Fourth and Broadway and relocated in 1973 to the newly constructed Broadway Plaza at 700 South Flower Street, saw its hosting complex evolve through multiple phases. In 2005, Broadway Plaza was acquired by Jamison Properties and rebranded as Plaza, marking an initial shift toward modern retail integration. By the late 2000s and into the 2010s, further transformations occurred, including the 2005 conversion of the Broadway Hollywood Building—a prominent former Broadway location at 1645 North —into 96 luxury loft condominiums with ground-floor retail, preserving its 1927 structure while adding residential appeal. Similarly, the Broadway Plaza site received a $160 million overhaul starting in 2013 by The Ratkovich Company, reopening in 2017 as The Bloc, an open-air center featuring retail outlets, offices, a cinema, and pedestrian connections to the Metro system, effectively revitalizing the area as a vibrant urban hub. However, the store at The Bloc closed in March 2025 as part of company-wide store closures. Preservation efforts have played a crucial role in maintaining the architectural legacy of Broadway Stores' buildings, with several earning recognition on the . The original downtown building at 401-423 South Broadway, operational from 1914 to 1973, contributes to the Broadway Theater and Commercial District, listed in 1979 for its significance in early 20th-century commercial architecture and urban development. This ten-story Beaux-Arts structure, now the Junipero Serra State Office Building, exemplifies , transitioning from retail to government offices while retaining its historic facade. The Broadway Hollywood Building also holds National Register status as part of the Hollywood Boulevard Commercial and Entertainment District, with its 1927 tower—once a Broadway outlet—repurposed into condominiums and that honors its design. Other sites, such as portions of the chain's expansions in suburban malls like the Broadway-Crenshaw Center (opened 1948), have been integrated into modern retail environments, where historic elements inform contemporary layouts without full-scale listings. In the and , redevelopments emphasized , converting former Broadway sites into eco-friendly spaces that addressed urban environmental challenges. The Bloc achieved LEED Gold certification, incorporating energy-efficient systems, measures, and waste reduction strategies to minimize its in . In 2023, it added a rooftop urban farm with 30 MicroHabitat pots and , promoting local , healthy eating, and reduced water usage while serving as an educational hub for workshops. These initiatives reflect broader trends in repurposing aging retail for green , enhancing resilience in high-density areas like . Broadway Stores holds enduring cultural significance as a Southern California retail icon, symbolizing the mid-20th-century era and evoking widespread in media and personal accounts. Featured in economic histories of , the chain influenced suburban shopping patterns, with sites like Broadway-Crenshaw pioneering integrated mall developments that spurred and community gathering spaces in the post-World War II boom. Memoirs and oral histories often recall its role in daily life, from holiday displays to fashion trends, cementing its place in regional identity; for instance, contemporary accounts highlight its appearances in films depicting 1950s-1970s life, underscoring themes of urban aspiration and . This legacy extends to the evolution of retail, where Broadway's growth from a single 1896 store to a multi-state chain exemplified the shift from independent emporiums to consolidated national operations, paving the way for modern big-box and dominance.

References

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