Ashley Stewart

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]

Ashley Stewart
IndustryRetail
Founded1991 (1991)
New York City, New York, U.S.
HeadquartersSecaucus, New Jersey, U.S.
Number of locations
89
Key people
James Rhee (Chairman & CEO)
ProductsClothing
Websiteashleystewart.com

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 arose out of real estate investor Joseph Sitt's frustration in bringing retailers into the inner city New York neighborhoods where he was developing real estate projects. After hiring merchants to study the market, he found that the biggest gap was in upscale fashion for plus-sized urban career women, and decided to open retail stores himself.

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]

Company Turnaround & 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, and in 2010 they were purchased by GB Merchant Partners.[6][7] The company faced financial difficulties during this time period, and would eventually file for bankruptcy in 2010 and again in 2014. After the 2014 bankruptcy the company was owned by affiliates of Clearlake Capital and the FirePine Group.[8] Despite their financial troubles, the company re-introduced a charitable giving program during the 2013 holiday season.

In the face of the company's severe liquidity shortage, James Rhee, a member of the Ashley Stewart's board of directors, resigned from his position and assumed full-time operational leadership of Ashley Stewart as the company faced imminent liquidation. Rhee moved the headquarters into a smaller space without enclosed offices, putting an emphasis on developing a more egalitarian, friendly, open and collaborative corporate culture. He also went to the stores and talked to customers, while writing a new business plan for the company. Approximately 100 stores were closed during this time, while the production cycle was sped up, as to get fresh clothing into stores in four to six weeks. Rhee also put an emphasis on expanding online, increasing their use of email and SMS, and expanding their presence on social media.

After Rhee became CEO the company's fortunes improved drastically, going from taking average losses of US$5–6 million a year (reaching a high of US$12 million annually) to bringing in profits of US $20 annually as of 2016. The company also eliminated its debt during this time. Inc. Magazine described the turnaround as one of the fashion industry's most impressive in the past few years, and preventing bankruptcy saved the jobs of the approximately 1000 people who now work for Ashley Stewart.

Rhee 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.[9] He was also awarded the Ernst & Young Entrepreneur Of The Year award in 2016 for his work with Ashley Stewart.[10] 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.[11][12][13][14]

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.[15] They opened their first new store since the bankruptcy in Newark, New Jersey, in April 2017.[4][8][2][16][17]

References
  1. Issenberg, Sasha (1 January 2006), "How I Did It: Joe Sitt, Thor Equities", Inc. Magazine, retrieved Feb 2, 2017
  2. Kaplam, David (26 January 2017), "Ashley Stewart To Open First Store Since Emerging From Bankruptcy", GeoMarketing, retrieved Feb 2, 2017
  3. “An Eye for Opportunity”, Stern Business, Spring/Summer 2008
  4. Givhan, Robin (1 September 2016), "How a plus-size clothing label dug out of bankruptcy: Body pride, diversity and Instagram", The Washington Post, retrieved Feb 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, 21 September 2010, retrieved March 31, 2017
  7. "GB Merchant Partners' 1903 Equity Fund L.P. Successfully Completes Acquisition of Ashley Stewart". Gordon Brothers Group Website. 8 November 2010. Archived from the original on 1 April 2017. Retrieved Feb 2, 2017.
  8. Rhee, James (31 July 2015), "How I Brought Ashley Stewart Back from Bankruptcy", Harvard Business Review, retrieved Feb 2, 2017
  9. "THE POWER PLAYERS 2016". National Retail Federation Website. Archived from the original on 26 January 2017. Retrieved 9 March 2017.
  10. "EY Announces Winners for the EY Entrepreneur Of The Year® 2016 New Jersey Award". EY.com. 24 June 2017. Retrieved 31 March 2017.
  11. Wilson, Marianne (20 April 2016), "The unlikely champion of Ashley Stewart", Chain Store Age, retrieved 6 March 2017
  12. Goldman, Jeremy (11 November 2015), "How This Famous Retailer Pulled Off a Stunning Turnaround", Inc. Magazine, retrieved Feb 9, 2017
  13. "A Good Fit", CNN, 21 September 2016, retrieved Feb 16, 2017
  14. Verdon, Joan (20 March 2016), "Loyalty to and from Ashley Stewart customers spurs a revival", NorthJersey.com, retrieved 6 March 2017
  15. Binns, Jessica (May 2015). "Ashley Stewart". Apparel Magazine. Chicago: Edgell Communications, Inc.
  16. Strunsky, Steve (31 March 2017). "Ashley Stewart store's triumphant return to Newark a 'plus' for shoppers". NJ.com. Retrieved 31 March 2017.
  17. Nanos, Janelle (31 August 2016). "Plus-size ambitions for James Rhee and the Ashley Stewart brand". Boston Globe. Retrieved 31 March 2017.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.