Montgomery Ward & Co.
, Incorporated is a multi-billion dollar retailer, one of the oldest and largest in the nation. The company operates specialty stores, distribution centers and product service centers from coast to coast. Its primary business is specialty retailing with a focus in the areas of apparel, fine jewelry, appliances and electronics, furniture, homewares and automotive accessories. The history of Montgomery Ward is a true American success story. Aaron Montgomery Ward, a young traveling salesman concerned by the high prices rural Americans were paying for shoddy goods, conceived the idea of selling quality merchandise by direct mail. He founded the company (and the catalog industry) in 1872, by ...
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the company unveiled its specialty store retailing strategy, again reflecting the changing marketplace and consumer demands. Also in 1985, catalog operations were discontinued. This move allowed the company to concentrate its resources on retail stores and began the company's transformation from a traditional mass merchandiser into a contemporary group of value-driven specialty stores. The success of the specialty store strategy led to a $3.8 billion dollar leveraged buyout by senior management in 1988, the largest management-led buyout in U.S. history at that time. Montgomery Ward they became a privately-held company after 12 years of Mobil Corporation ownership. With Montgomery Ward's position as the largest privately held retailer in the United States, it was a shock to everyone when on July 7, 1997, the company announced they would be filing for Chapter 11 Bankruptcy. The writing, however, was on the wall long before the July 7 declaration. As of January 1997 Roger Goddu became ...
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Wards, who was already in violation of its loan agreements, also admitted they could not meet the $1.4 billion debt payment due August 29, 1997 without a major asset sale. The pressure kept building for a fast fix at Wards. Unfortunately, the fast fix Ward's so desperately needed could not be found, and, on July 7, 1997, had to file for protection under the Chapter 11 bankruptcy code.
About 20,000 Chapter 11 bankruptcies are filed each year, mostly by businesses. The action usually involves a reorganization that allows a business to stay in operation and pay a portion of their debts. The remainder of the debts is discharged. The principles for paying the creditors are the same ...
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"Montgomery Ward & Co.." Essayworld.com. February 4, 2006. Accessed April 18, 2024. http://www.essayworld.com/essays/Montgomery-Ward-Co/40671.
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