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Rickel

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apparent that Rickel's future was beginning to look grim. Supermarkets General was still in serious financial trouble as Pathmark's sales continued to slide, and the company chose to keep its focus on trying to bring its primary brand out of decline. As a consequence of this, Rickel was unable to receive the funding it needed to properly compete with the juggernaut that Home Depot was becoming. In 1994, Supermarkets General reorganized. The company changed its name to Pathmark Stores, Inc. and began looking for ways to divest itself of its varied retail properties including Rickel. In the summer of 1994, they found a solution.
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Although Rickel was one of the larger and more successful home improvement chains in the area prior to Home Depot's entry into its market, Rickel tended to operate in smaller facilities than Home Depot did even after its merger with Channel. For example, a typical Home Depot store was well over 100,000 square feet (9,300 m) in size. Rickel stores, by comparison, averaged approximately 40,000 square feet (3,700 m) with a handful of stores such as the Totowa, New Jersey store and the Wayne, New Jersey store being larger (the Wayne store was, in fact, the company's largest).
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Depot stores. The attempt did little, if anything, to either take business from Home Depot or lure customers to Rickel and in August 1997, a plan to allow the chain to remain open until at least February 1998 was rejected. Despite its best efforts, it now seemed that it was no longer a matter of if the still-in-bankruptcy Rickel could reverse its fortunes and stave off its demise but instead a matter of how much time the former home improvement stalwart had left before it would be forced to close its doors for good.
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had been unheard of. The idea was to start a business selling the supplies to the general public at retail cost, with Ryan as their salesman. In that role, the brothers felt that he could not only sell the supplies to the people but pass along his plumbing knowledge to advise customers on how to fix their own toilets, sinks, drains, etc., and making sure they had the correct parts to perform the repair. So, in 1953 Al, Mort, and Bob opened up the first Rickel Brothers store in
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parent Pathmark had left on Rickel, and thus a bankruptcy filing was looming as a serious possibility. To try and stave it off, the company decided to close thirteen underperforming stores shortly after the Home Depot lawsuit was filed. This did not work, and on January 10, 1996, Rickel announced it had filed for Chapter 11 bankruptcy protection. More store closures followed, with another thirteen locations liquidated by July.
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departments like its plant nursery. The first location, coincidentally, opened in the former East Brunswick, New Jersey store Rickel occupied for thirty-plus years. Home Depot would open several more Villager's stores in the next year, but the company decided to discontinue the brand shortly thereafter and convert the stores to smaller Home Depot locations.
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If things were not bad enough, by the end of 1995 Rickel discovered that their financial situation was significantly more unstable than they had realized. The new sales figures from its fifty-nine new stores had not done enough to correct the damage that the years of financial trouble that its former
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Rickel was one of the first "do-it-yourself" home improvement stores, eventually expanding beyond plumbing supplies and selling heating and electrical supplies and tools in addition. An early slogan and jingle of the Rickel chain, which lasted in some degree to its 1997 closure, was "Rickel Helps You
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Plumbing supplies were usually sold wholesale at this time, which presented a problem for Al, Mort, and Bob. With the massive amount of supplies they had, it was likely going to take a significant amount of time for them to sell them off to local plumbers. They came up with an idea that, at the time,
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In 1997 Rickel decided to shift focus again and focus less on being a direct competitor to Home Depot, which had now established itself as the New York area market leader in retail home improvement. Instead, Rickel decided to focus on things that made it unique compared to the larger, big-box chain.
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However, all the news was not positive. Despite the addition of so many new stores to its fold, the sales they generated were not enough to fully pull Rickel out of the tailspin it had found itself in; in fact, the sudden massive expansion proved to be another burden on the company's finances. Also,
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Capital Markets Inc. received 55 percent of the shares, Equitable Life Assurance received 30 percent and SGC management retained ten percent. The company's debt grew to $ 1.6 billion (~$ 3.3 billion in 2023) by early 1990, half of it in junk bonds, primarily as a result of the buyout. Servicing
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picked up 41 of those leases, including Rickel's Bloomfield store that they had been sued trying to protect. Staples did not reopen all of the Rickel locations they purchased, however, as there were objections raised by some of the tenants and landlords involving six of the forty-one purchases. The
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to acquire both Rickel and Channel Home Centers and announced that the two chains would be merging into one with the Rickel brand continuing forward. This resulted in Rickel expanding from 33 stores to 92, its largest wave of expansion in its history, and brought the company into markets it had not
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The year after Rickel shut its doors for good, in a strange twist, Home Depot decided to try its own hand at a smaller, neighborhood home center concept and created Villager's Hardware, which were similar to Rickel stores in their size and setup and included some scaled back versions of Home Depot
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Rickel decided, as they had tried once before, to use their size to their advantage and define themselves as more of a neighborhood home center. Since both Rickel and Home Depot sold many of the same items, Rickel's strategy was to portray the stores as much easier to shop at than the immense Home
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Although Rickel was starting to show signs of recovery that met with positive reactions, reality painted a different picture as the company appeared to be in a state of terminal decline. Rickel went through two more rounds of closures that ran into 1997; when those were done, the chain was almost
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However, like many of its fellow outlets the Bloomfield Rickel was a much smaller sized business than the massive Home Depot stores being built in and around New Jersey were. Rickel certainly was not in a good position as even though their store was in a centralized location, the Home Depot store
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However, Supermarkets General's fortunes were starting to turn as the company entered a financial downturn that it stayed locked in, in various forms, for the next two decades. While Rickel was doing well, its corporate sibling Pathmark was losing business and dragging the company's finances down
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An anecdotal story says that a few years later, the brothers purchased a warehouse full of plumbing supplies for "next to nothing". In many cases, a contractor involved in heating is also involved in plumbing, but the Rickel brothers were not. Since they were unfamiliar with plumbing, they had no
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Rickel decided to fight the proposal. Its methods, however, led to Home Depot filing a lawsuit in New Jersey court in July of that year. Home Depot alleged that Rickel had engaged in a deceitful "smear campaign"; Rickel was accused of posing as a community action group that accused Home Depot of
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began to open stores in the New York/New Jersey metropolitan area. Although Rickel, Channel, Pergament, and local hardware stores all felt the effects of Home Depot's entry and quick expansion into their market area, Rickel's problems were made worse by its parent company's financial state. This
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Do it Better- Do it Better With Rickel"- a reflection of the Rickel brothers' focus which included employees who could explain to customers how to perform their own home repairs. The concept took off and enabled 'Rickels' (as the store came to be known locally) to develop a loyal customer base.
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By 1995, Home Depot was establishing itself as New Jersey's home improvement leader and building stores almost anywhere demand existed, putting significant strain on Rickel and its competitors that had long been established before Home Depot's encroachment. One of these areas was a large vacant
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On October 11, 1997, Rickel vice president for marketing Greg Hanselman made the announcement that the company "ran out of cash" to operate the remaining 49 stores and that the chain was to begin liquidating. Most of the Rickels were closed by Thanksgiving 1997, with several more lasting until
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Combined with Home Depot's expansion and its parent company's debt problems, not only did Rickel find itself unable to compete with the rapidly growing Home Depot, but it also began to lose market share to its local competitors who were on more secure financial footing. By Fall 1993, it became
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executive office headquarters, which doubled as a distribution and storage center that had been expanded to nearly 800,000 square feet by 1988. In 1975, the Rickel division of SGC recorded $ 80 million (~$ 352 million in 2023) in sales and was the dominant home improvement retailer in the
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The Orange Street location was less than one mile from the Bloomfield Center strip mall where Rickel, at the time, was its longstanding anchor store. The center is located along Bloomfield Avenue, which is one of the most heavily traveled roads in New Jersey running from
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Pre-cast concrete construction with full structural steel frame and masonry panels. Former Rickel Corporate Headquarters, originally built in 1973, added covered storage in 1984 and added a two-story office addition in
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All three Rickel brothers have since died. Mort Rickel passed away at 61 in 1980; his two brothers would reach 90 before following him in death. Al Rickel passed away in 2008, and Bob Rickel passed away in 2014.
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supermarket was supposed to be constructed on the remaining property, but the company was forced to stop construction after a 2001 bankruptcy filing; the store was eventually completed in 2003 and opened as a
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idea what the actual value of the haul was and sought help. A friend put them in touch with a plumber named Bill Ryan, who agreed to go through the items and determine how much they would sell for.
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or other businesses that failed. Only a portion of the Wayne store still exists. The rear portion of the store was converted into a bowling alley while the remainder was demolished. Originally, a
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Faced with an increasingly competitive market, Rickel attempted to reinvent its image with an upscale decor-oriented store simply called "HĹŤM" in 1990, tested as a prototype store in
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On August 26, 1995, a move by venture capital firm Eos Partners, L.P. resulted in a merger with one of Rickel's competitors. That day, Eos made separate deals with Pathmark and
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As far as the other stores mentioned in this portion of the article are concerned, the Totowa store was repurposed as a clothing retailer, first being occupied by
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made a hostile takeover bid to acquire SGC. In a move to avoid the takeover, management took the company private by engineering a $ 2.1 billion leveraged buyout.
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December as they received more merchandise from already shuttered stores. The last Rickel to close was its largest, with the Wayne store closing in early 1998.
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would siphon away a significant amount of their customers. In addition, the store would have easy access as it was located very near Bloomfield's border with
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the battle with Home Depot for market share was continuing to be an uphill one for Rickel, and the chain would soon find itself in significant legal trouble.
732: 528:, closed in 2009 after the company’s surprise bankruptcy filing, and has since had a rotating chain of occupants that have either been seasonal stores like 407:
served before; to reflect their new direction, Rickel briefly rebranded itself as "The New Rickel" and adopted the slogan “Bringing it all closer to home".
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The Rickels began expanding quickly after their first store became a success and by the early 1960s were operating three locations, all in New Jersey:
284:. The subsequent decade was a time of continued expansion as the Rickel chain grew to over 30 stores by the mid-eighties, including one in the former 205: 244:, and a new location in Union. By 1967 the "Rickel Supermarts" chain (as the stores were now known) had six stores, all in New Jersey, opening in 1055: 639: 472:
bringing an increase of car theft and violent crime everywhere they opened stores, specifically citing figures obtained from the police in
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An early example of the consequences of the rivalry between Rickel and Home Depot can be seen in an incident surrounding
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The origins of the company date back to 1946 when brothers Al, Mort, and Bob Rickel went into business for themselves in
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led to a 1996 bankruptcy filing and liquidation and closure starting in late 1997 and continuing through early 1998.
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in an attempt to convince Home Depot to return, which they did.(Vila eventually launched his own television series,
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Rickel still held leases on the 53 stores they were operating at the beginning of 1997, and office supply chain
952: 449: 252:. The Rickels then began expanding at a more rapid pace, opening more stores in New Jersey and entering the 161: 452:, and Newark as the township's borders with all three municipalities are very close to Bloomfield Center. 445: 421: 333:
helped lead to a somewhat contentious relationship between Rickel and Home Depot over the next few years.
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half the size of what it had been just two years before, with 49 locations still operating.
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markets for the first time. During this time a corporate headquarters was established in
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http://www.rbagroup.com/Project%20Sheet%20PDF's/.../Preakness%20Mall.pdf
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and located near public transit on nearby Watsessing Avenue (including a
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The Rickel brothers sold the still-growing chain of Rickel Supermarts to
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and still occupies the space today, while the other half was taken by
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company's distribution center, meanwhile, was retaken by Pathmark.
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Around the time of Supermarkets General's cash flow problems, the
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the debt became SGC's primary objective and largest problem.
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The original logo used by Rickel in the 1950s and '60s.
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Companies that filed for Chapter 11 bankruptcy in 1996
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Plumbing, heating, electrical supplies & hardware.
986: 857:"Rickel Home Centers Plans To Close 13 More Stores" 121: 113: 103: 91: 81: 73: 65: 52: 30: 828:"Rickel Home Centers Seeks Chapter 11 Protection" 1031:Home improvement retailers of the United States 649: 647: 583: 581: 579: 564:List of defunct retailers of the United States 276:region, far outselling its larger competitors 1026:Defunct retail companies of the United States 8: 16: 903: 901: 899: 655:"Paid Notice: Deaths RICKEL, ALVIN MILTON" 22: 15: 782:"Home Depot Sues Rickel, Charging Smear" 43:Originally, "Do It Yourself" Home Center 1041:Retail companies disestablished in 1998 575: 340:' long running home improvement series 983: 885: 875: 855:Business, Bloomberg (March 15, 1996). 706:"Throwback Thursday: Rickel goes HoM" 626: 624: 622: 620: 618: 616: 614: 612: 7: 1051:1998 disestablishments in New Jersey 1036:Retail companies established in 1953 1010:Throwback Thursday: Rickel heads HoM 927:Strunsky, Steve (October 12, 1997). 588:Strunsky, Steve (October 12, 1997). 753:Levin, Doron P. (August 26, 1994). 420:parcel of land on Orange Street in 109:Al Rickel, Mort Rickel, Bob Rickel 14: 1046:1953 establishments in New Jersey 992: 908:Holusha, John (August 2, 1998). 799:Holusha, John (August 2, 1998). 755:"Sale Set Of Channel And Rickel" 516:'s Aisle 3 concept and later by 398:Merger with Channel Home Centers 269:Supermarkets General Corporation 219:Classic Rickel logo on a box of 131:Supermarkets General Corporation 723:Beck, Barbara (April 4, 1989). 462:New Jersey Transit rail station 160:in later years) was a chain of 328:-based home improvement chain 1: 1056:1994 mergers and acquisitions 704:Clark, Ken (March 27, 2018). 136:Eos Partners L.P. (1994-1998) 273:South Plainfield, New Jersey 262:South Plainfield, New Jersey 708:. HBSDealer. Archived from 39:Stock Corporation 1969-1994 1077: 480:Bankruptcy and liquidation 991: 358:and its lumber supplier, 21: 689:. Sitar Realty Company. 376:Home Again with Bob Vila 162:home-improvement centers 464:) and Exit 148 on the 422:Bloomfield, New Jersey 415:Home Depot sues Rickel 386:shortly after leaving 320:Home Depot competition 307:with it. In 1987, the 303: 301:Toms River, New Jersey 224: 196: 298: 218: 194: 466:Garden State Parkway 442:Broad Street Station 174:Channel Home Centers 152:in its early years, 97:South Plainfield, NJ 549:Fate of the Rickels 474:Clifton, New Jersey 158:Rickel Home Centers 18: 933:The New York Times 914:The New York Times 888:has generic name ( 862:The New York Times 833:The New York Times 806:The New York Times 786:The New York Times 760:The New York Times 712:on March 28, 2019. 660:The New York Times 595:The New York Times 366:, the producer of 304: 290:Totowa, New Jersey 225: 197: 186:Newark, New Jersey 164:based in northern 156:in the 1960s, and 1006: 1005: 640:978-0-07-134095-3 634:, pp.126-30 1999 632:Inside Home Depot 514:Filene's Basement 206:Union, New Jersey 154:Rickel Supermarts 143: 142: 95:200 Helen Street, 41:Private 1994-1998 1068: 996: 995: 984: 973: 972: 967:. 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Index


Private
Home improvement
Retail
Home improvement
Bankruptcy
Parent
Supermarkets General Corporation
home-improvement centers
New Jersey
Home Depot
Channel Home Centers
Newark, New Jersey

Union, New Jersey

soda syphon
Succasunna
Paramus
East Brunswick
Menlo Park
Wayne
New York
Pennsylvania
South Plainfield, New Jersey
Supermarkets General Corporation
South Plainfield, New Jersey
Channel Lumber
Pergament
Ice World

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