Ashley Stewart

Last updated

Ashley Stewart
IndustryRetail
Founded1991;33 years ago (1991)
New York City, New York, U.S.
Headquarters Secaucus, New Jersey, U.S.
Number of locations
89
Key people
Gary Sheinbaum (Chairman & CEO)
ProductsClothing
Website ashleystewart.com

Ashley Stewart is an American plus size women's clothing company and lifestyle brand, which was founded in 1991. The name Ashley Stewart was inspired by Laura Ashley and Martha Stewart, who the company saw as icons of upscale Americana. [1]

Contents

The Secaucus, New Jersey-based company has 89 stores across 22 states. They sell a variety of apparel, ranging from jeans to dresses and shoes. In recent years the brand has made a comeback, after filing for bankruptcy in 2010 and 2014. [2]

History

Ashley Stewart in Roxbury, Massachusetts Ashley Stewart, Roxbury MA.jpg
Ashley Stewart in Roxbury, Massachusetts

Ashley Stewart was founded in 1991, and quickly grew to over 380 stores in more than 100 cities, recording annual sales as high as US $400 million, which prompted many national retailers to follow suit, and helped change the urban retail landscape. [3] [4] [1] In 1996 the TSG Capital Fund II made an initial investment of US$30 million in Ashley Stewart. [5]

The company focused on holding events like fashion shows instead of launching large advertising campaigns. They would often hold 300 to 350 fashion shows a year, which raised money for the communities they were in. Each Ashley Stewart store also hired from within the community, and the company was recognized by President Bill Clinton for its contribution to the Welfare-to-work program. [3]

Reinvention

In 2000 Sitt sold the company, after which it was owned by multiple private equity firms - a group led by Trimaran Fund II bought the company in 2004. In 2010, Urban Brands, the parent company of Ashley Stewart, filed for Chapter 11 bankruptcy protection, and Ashley Stewart was later purchased by GB Merchant Partners. [6] [7] Despite their continued financial troubles, the company re-introduced a charitable giving program at select locations during the 2013 holiday season. [8]

In March 2014, Ashley Stewart filed for Chapter 11 bankruptcy protection for the second time in four years as part of a potential sale of its assets. The company announced the closure of 27 underperforming locations. [9] Ashley Stewart was later acquired by affiliates of Clearlake Capital and the FirePine Group. [10]

James Rhee, CEO at the time, was recognized by the National Retail Federation's Foundation as a 2016 Power Player for his work in turning the company around and developing a core strategy based on kindness and loyalty. [11] He was also awarded the Ernst & Young Entrepreneur Of The Year award in 2016 for his work with Ashley Stewart. [12] Rhee has said that he seeks to manage the company 'like a hedge fund', with the level of mathematical analysis and operational discipline of a blue chip investment firm, while at the same time developing a kind, open, and egalitarian corporate culture. [13] [14] [15] [16]

The company has also successfully moved into e-commerce, with e-commerce business accounting for approximately 40% of revenue as of 2016. They have also expanded internationally, and are now shipping to Canada, the Caribbean, and the UK. [17] They opened their first new store since the bankruptcy in Newark, New Jersey, in April 2017. [4] [10] [2] [18] [19]

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References

  1. 1 2 Issenberg, Sasha (January 1, 2006), "How I Did It: Joe Sitt, Thor Equities", Inc. Magazine, retrieved February 2, 2017
  2. 1 2 Kaplam, David (January 26, 2017), "Ashley Stewart To Open First Store Since Emerging From Bankruptcy", GeoMarketing, archived from the original on January 27, 2017, retrieved February 2, 2017
  3. 1 2 “An Eye for Opportunity”, Stern Business, Spring/Summer 2008
  4. 1 2 Givhan, Robin (September 1, 2016), "How a plus-size clothing label dug out of bankruptcy: Body pride, diversity and Instagram", The Washington Post, retrieved February 2, 2017
  5. ↑ Udayan, Gupta (2000). Done Deals: Venture Capitalists Tell Their Stories . Boston, MA: Harvard Business Press. p.  59. ISBN   0-87584-938-5.
  6. ↑ "UPDATE 4-Ashley Stewart parent files for bankruptcy", Reuters, September 21, 2010, retrieved March 31, 2017
  7. ↑ "GB Merchant Partners' 1903 Equity Fund L.P. Successfully Completes Acquisition of Ashley Stewart". Gordon Brothers Group Website. November 8, 2010. Archived from the original on April 1, 2017. Retrieved February 2, 2017.
  8. ↑ "Ashley Stewart Gives Back To Local Charities" (Press release). PR Newswire. January 17, 2014. Retrieved July 24, 2024.
  9. ↑ "NJ retailer Ashley Stewart files for bankruptcy, will close 27 stores". The Star-Ledger. March 10, 2014. Retrieved July 24, 2024.
  10. 1 2 Rhee, James (July 31, 2015), "How I Brought Ashley Stewart Back from Bankruptcy", Harvard Business Review, retrieved February 2, 2017
  11. ↑ "THE POWER PLAYERS 2016". National Retail Federation Website. Archived from the original on January 26, 2017. Retrieved March 9, 2017.
  12. ↑ "EY Announces Winners for the EY Entrepreneur Of The Year® 2016 New Jersey Award". EY.com. June 24, 2017. Retrieved March 31, 2017.
  13. ↑ Wilson, Marianne (April 20, 2016), "The unlikely champion of Ashley Stewart", Chain Store Age, archived from the original on March 16, 2017, retrieved March 6, 2017
  14. ↑ Goldman, Jeremy (November 11, 2015), "How This Famous Retailer Pulled Off a Stunning Turnaround", Inc. Magazine, retrieved February 9, 2017
  15. ↑ A Good Fit, CNN, September 21, 2016, retrieved February 16, 2017
  16. ↑ Verdon, Joan (March 20, 2016), "Loyalty to and from Ashley Stewart customers spurs a revival", NorthJersey.com, archived from the original on March 16, 2017, retrieved March 6, 2017
  17. ↑ Binns, Jessica (May 2015). "Ashley Stewart". Apparel Magazine. Chicago: Edgell Communications, Inc.
  18. ↑ Strunsky, Steve (March 31, 2017). "Ashley Stewart store's triumphant return to Newark a 'plus' for shoppers". The Star-Ledger. Retrieved March 31, 2017.
  19. ↑ Nanos, Janelle (August 31, 2016). "Plus-size ambitions for James Rhee and the Ashley Stewart brand". Boston Globe. Retrieved March 31, 2017.
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