Merry-Go-Round was an American clothing retail chain owned by Merry-Go-Round Enterprises, Inc., that thrived from the 1970s through the early 1990s. The chain fell into bankruptcy during the mid-1990s, and eventually ceased operation in 1996.[3] It was famous for its ability to profit from short-lived fashion fads[1] and also owned men's clothing retailers Silverman's, by purchasing 273 stores from Retail Ventures, Inc. (RVI), parent of American Eagle Outfitters, in 1989. In May 1993, it purchased the Chess King clothing chain from the Melville Corporation.[4] It filed for Chapter 11 bankruptcy in 1994 and began liquidation sales by February 1996.[5] At its end, the company operated just over 500 locations,[3] primarily in enclosed malls.[1]
| Company type | Public[1] |
|---|---|
| Industry | Retail |
| Founded | 1968[2] |
| Founder | Leonard Weinglass[1] Harold Goldsmith[1] |
| Defunct | 1996 |
| Fate | Bankruptcy liquidation |
| Headquarters | , United States[1] |
Number of locations | 536 stores (1996)[3] |
Area served | North America |
| Products | Clothing |
| Parent | Merry-Go-Round Enterprises, Inc. |
Their mid-1980s commercials parodied Quiet Riot's "Cum On Feel the Noize", with teens and young adults walking down a hallway with massive sized speakers blaring the song.[citation needed]
Merry-Go-Round's unsuccessful reorganization led to the 1998 lawsuit Devan v. Ernst and Young against Ernst and Young for violating the standard of care as turnaround advisor. The case resulted in the largest single defendant settlement in Maryland history.[6][3]
References
edit- ^ a b c d e f "Merry-Go-Round Enterprises, Inc". Fundinguniverse.com. Retrieved December 10, 2011.
- ^ Klein, Alec Matthew (February 3, 1996). "Merry-Go-Round has final ride; Apparel retailer calls it quits, ending Maryland institution; 'A member of the family'; Reorganization fails to prevent liquidation amid $200 million loss". The Baltimore Sun. Archived from the original on June 22, 2021. Retrieved June 21, 2022.
1968: Merry-Go-Round Enterprises Inc., founded by Leonard "Boogie" Weinglass and Harold Goldsmith, opens first store in Atlanta.
- ^ a b c d Steinhauer, Jennifer (February 3, 1996). "Bankrupt Merry-Go-Round Decides to Go Out of Business". The New York Times. Retrieved February 6, 2014.
- ^ Dresser, Michael (March 18, 1993). "Merry-Go-Round to buy Chess King; Joppa-based retailer to grow nearly 50%". The Baltimore Sun. Retrieved March 28, 2014.
- ^ Hendren, John (February 2, 1996). "Merry-Go-Round Is Going Out of Business". AP NEWS. Retrieved November 29, 2020.
- ^ "Weltchek Mallahan & Weltchek - Ernst & Young". Wmwlawfirm.com. Weltchek Mallahan & Weltchek. Archived from the original on March 24, 2012. Retrieved September 3, 2013.
External links
edit- "COMPANY NEWS; MERRY-GO-ROUND FILES ITS REORGANIZATION PLAN". The New York Times. February 24, 1995.