Clothestime

Last updated
Clothestime Stores Inc.
FormerlyClothesline (1974)
TypePublic (1983-1997), Private (after 1997)
Industry Retail
Founded1974;49 years ago (1974)
Defunct2004;19 years ago (2004)
Headquarters Anaheim, California
Number of locations
550 (December 1995)
Key people
Raymond DeAngelo
John Ortega II
Norman Abramson
Products Apparel
Website "Clothestime". Archived from the original on 12 April 2003.

Clothestime was an American discount women's apparel retailer which originally found success in the junior clothing market. Founded by Raymond DeAngelo and John Ortega II in 1974, [1] [2] at its peak, the chain had more than 500 locations across the United States. [3]

Their motto was "always in fashion, never full price", [4] and they typically offered trendy brand-named merchandise at 30 to 70 percent below the retail prices suggested by manufacturers, [5] [6] as well as their own private-label items.

Clothestime stores were often located in low-rent strip malls. [2]

History

During the early 1970s, business partners Raymond DeAngelo and John Ortega II curated clothing items from flea markets, [1] reselling them to retailers in Southern California. By 1974, they shifted to conventional retailing and opened their own store, which they soon developed into a retail chain.

In 1983, Clothestime went public, and rapid growth soon followed. They expanded from 98 stores at the time of going public, to 263 stores by 1987. [7]

In 1989, amid a $2.2-million loss from the previous year, Clothestime changed their marketing strategy, targeting "older" career-oriented customers over the age of 25. [2] [8]

By 1992, Clothestime was back to rapid growth, [4] and the company set a goal of opening 1,000 stores by the year 2000. [9] However, operations had already begun to show signs of slowing in 1993. [10]

In January 1995, Raymond DeAngelo resigned from his position as chief executive officer, [11] vice chairman, and director. Prior to his resignation, DeAngelo had been vice chairman since 1982, and chief executive since 1990. [12]

In December 1995, Clothestime filed for bankruptcy for the first time, with plans to close 140 of its 550 stores. [3] [13] [14]

In January 1997, executives John Ortega II (chairman, chief executive, and co-founder), and Norman Abramson (president and chief operating officer) resigned from their positions at Clothestime. [15] [14] [11]

In September 1997, a bankruptcy court confirmed reorganization plans for Clothestime. Clothestime's stock was cancelled, and the company went private. [16]

In 2002, Clothestime launched an $8 million marketing campaign. [5]

In January 2003, in the hopes of retooling its image, [17] Clothestime was purchased by JM Associates, an apparel manufacturer in New York. [18]

In June 2003, Clothestime's creditors filed an involuntary bankruptcy petition, claiming more than $700,000 in missed payments. [19]

In early 2004, Clothestime ceased operations. [20]

In 2012, the bankruptcy case was closed after Clothestime had paid out almost $2 million in claims to creditors. [21]

As of 2013, Clothestime owed the state of California almost $2.9 million in unpaid taxes. [21]

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References

  1. 1 2 Rutberg, Sidney (16 October 1986). "Clothestime rose from flea market roots". Women's Wear Daily . 152. Retrieved 31 January 2023.
  2. 1 2 3 Tighe, John Charles (8 March 1989). "Clothestime Plans to Close 10 Stores, Bid for Older Shoppers". Los Angeles Times . Retrieved 31 January 2023.
  3. 1 2 Johnson, Greg (9 December 1995). "Clothestime Apparel Chain to Reorganize : Bankruptcy: The Orange County-based discounter plans to close 140 of its 550 outlets". Los Angeles Times . Retrieved 30 January 2023. About 140 of the company's 550 locations will be sold off or closed
  4. 1 2 "Clothestime earnings up 50 percent". United Press International. 19 August 1992. Retrieved 31 January 2023.
  5. 1 2 "Clothestime Steps Out With Marketing Drive". California Apparel News. 7 June 2002. Retrieved 31 January 2023.
  6. ↑ Horovitz, Bruce (29 May 1986). "Clothestime Chain Plans to Double Number of Stores". Los Angeles Times . Retrieved 31 January 2023.
  7. ↑ Galante, Mary Ann (25 February 1986). "ClothesTime Inc. Fills Its Long-Vacant President's Post". Los Angeles Times . Retrieved 31 January 2023.
  8. ↑ Galante, Mary Ann (17 August 1989). "Retailer Bouncing Back from Loss : Clothestime Woos 'Older' Women--and It Pays". Los Angeles Times . Retrieved 31 January 2023.
  9. ↑ Woodyard, Chris (18 June 1992). "RETAIL : Anaheim's Clothestime Hopes to Be a Size-1,000 Chain by the Year 2000". Los Angeles Times . Retrieved 31 January 2023.
  10. ↑ "Clothestime Inc.: The Anaheim women's apparel retailer..." Los Angeles Times . 2 November 1993. Retrieved 31 January 2023.
  11. 1 2 Johnson, Greg (21 January 1997). "Co-Founder May Reenter Clothestime as an Investor". Los Angeles Times . Retrieved 1 February 2023.
  12. ↑ "DEANGELO STEPS DOWN FROM CLOTHESTIME POSTS". Women's Wear Daily . 10 January 1995. Retrieved 1 February 2023.
  13. ↑ Johnson, Greg (9 December 1995). "Clothestime Rags-to-Riches Story Adds Sad Chapter 11". Los Angeles Times . Retrieved 31 January 2023.
  14. 1 2 "CLOTHESTIME TO BE SOLD OR CLOSED". Women's Wear Daily . 31 January 1997. Retrieved 31 January 2023.
  15. ↑ "BANKRUPT CLOTHESTIME LOSES TWO TOP EXECS". Women's Wear Daily . 21 January 1997. Retrieved 1 February 2023.
  16. ↑ "COURT APPROVES CLOTHESTIME CHAPTER 11 PLAN". Women's Wear Daily . 15 September 1997. Retrieved 31 January 2023.
  17. ↑ "New Focus for Clothestime Could Include New Owner". California Apparel News. 10 January 2003. Retrieved 31 January 2023.
  18. ↑ "JM Associates Buys Clothestime". Women's Wear Daily . 6 February 2003. Retrieved 31 January 2023.
  19. ↑ "Clothestime's Creditors File Bankruptcy Petition". Los Angeles Times . 17 June 2003. Retrieved 31 January 2023.
  20. ↑ "Clothestime readies comeback, considering Wet Seal locations". Women's Wear Daily . 3 November 2004. Retrieved 31 January 2023.
  21. 1 2 Leung, Lily (19 September 2013). "Clothestime's death doesn't deter taxes". The Orange County Register . Retrieved 31 January 2023.
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