Channel Home Centers
Encyclopedia
Channel Home Centers was a chain of home improvement
retail stores that was based in Whippany, New Jersey
. The chain of stores was founded in 1948 but could trace its history as far back as 1922 or 1908, when the original lumber company that preceded it was founded. At its peak Channel operated stores in nine states, and did business in the Philadelphia and New York metropolitan areas. In August 1994 Channel was bought by venture capital firm Eos Partners L.P. and merged with competitor Rickel
, ceasing to exist.
profile traced the company's origins to a lumber business started in Newark in 1922 by two Russian Jewish Americans, Abraham Levy and Morris Charin (1887–1963). A 1990 article in the same publication, and other company releases, however, have put the founding date at 1908. In any event, Louis L. Slater (1913–1987), son-in-law of Levy, opened the first retail outlet in Newark, New Jersey
in 1948.
In 1963, it was reported that Channel Lumber had seven locations, all in New Jersey.
By late 1975, the chain had 24 locations, 22 of which were in New Jersey. W. R. Grace and Company
purchased the company from the Slater family in 1977 for $19 million. By 1979, the company had expanded to over 70 locations, moving beyond New Jersey and Pennsylvania to enter New York, Connecticut, and Delaware in 1978, and Maryland and Massachusetts in 1979.
In 1986, Channel's executives bought the company through a leveraged buyout
. The purchase included a total of 202 retail locations in 20 states, including home centers under W.R. Grace located in the southeast, among them "Handy City" and Handy Dan
.
By 1990, the chain had grown to 89 Channel outlets in nine states, but in early 1991, the company filed for Chapter 11
bankruptcy protection, and announced a plan to close 34 of 86 stores, mostly in the Baltimore-Washington and New England markets. It emerged from bankruptcy in March 1992.
In 1994, Channel and its competitor Rickel
were bought by a venture capital firm, which merged the operations of the two chains under the Rickel name. At that point in time, it had 60 locations, and its 1993 sales topped $300 million. Nearly all the Channel stores were converted into Rickel
locations, except for one location that was operated in very close proximity to a Rickel store.
Home improvement
Home improvement, home renovation or remodeling is the process of renovating or making additions to one's home.-Types of home improvement:...
retail stores that was based in Whippany, New Jersey
Whippany, New Jersey
Whippany is an unincorporated area located within Hanover Township in Morris County, New Jersey. Whippany's name is derived from the Whippanong Native Americans, a tribe that once inhabited the area...
. The chain of stores was founded in 1948 but could trace its history as far back as 1922 or 1908, when the original lumber company that preceded it was founded. At its peak Channel operated stores in nine states, and did business in the Philadelphia and New York metropolitan areas. In August 1994 Channel was bought by venture capital firm Eos Partners L.P. and merged with competitor Rickel
Rickel
Rickel was a home improvement store chain based in northern New Jersey. The Rickels' first store opened in 1953 and for three decades Rickel was the leading hardware, plumbing, heating and electrical retailer in its region...
, ceasing to exist.
History
A 1975 New York TimesThe New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
profile traced the company's origins to a lumber business started in Newark in 1922 by two Russian Jewish Americans, Abraham Levy and Morris Charin (1887–1963). A 1990 article in the same publication, and other company releases, however, have put the founding date at 1908. In any event, Louis L. Slater (1913–1987), son-in-law of Levy, opened the first retail outlet in Newark, New Jersey
Newark, New Jersey
Newark is the largest city in the American state of New Jersey, and the seat of Essex County. As of the 2010 United States Census, Newark had a population of 277,140, maintaining its status as the largest municipality in New Jersey. It is the 68th largest city in the U.S...
in 1948.
In 1963, it was reported that Channel Lumber had seven locations, all in New Jersey.
By late 1975, the chain had 24 locations, 22 of which were in New Jersey. W. R. Grace and Company
W. R. Grace and Company
W. R. Grace and Company is a Columbia, Maryland, United States based chemical conglomerate.The company has two main divisions, Davison Chemicals and Performance Chemicals. The Davison unit makes chemical catalysts, refining catalysts, and silica-based products that let other companies make...
purchased the company from the Slater family in 1977 for $19 million. By 1979, the company had expanded to over 70 locations, moving beyond New Jersey and Pennsylvania to enter New York, Connecticut, and Delaware in 1978, and Maryland and Massachusetts in 1979.
In 1986, Channel's executives bought the company through a leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
. The purchase included a total of 202 retail locations in 20 states, including home centers under W.R. Grace located in the southeast, among them "Handy City" and Handy Dan
Handy Dan
Handy Dan Home Improvement was one of the first home improvement retailer chains. It went out of business in May, 1989. Ironically, Handy Dan employed two corporate officers named Arthur Blank and Bernie Marcus...
.
By 1990, the chain had grown to 89 Channel outlets in nine states, but in early 1991, the company filed for Chapter 11
Chapter 11, Title 11, United States Code
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most...
bankruptcy protection, and announced a plan to close 34 of 86 stores, mostly in the Baltimore-Washington and New England markets. It emerged from bankruptcy in March 1992.
In 1994, Channel and its competitor Rickel
Rickel
Rickel was a home improvement store chain based in northern New Jersey. The Rickels' first store opened in 1953 and for three decades Rickel was the leading hardware, plumbing, heating and electrical retailer in its region...
were bought by a venture capital firm, which merged the operations of the two chains under the Rickel name. At that point in time, it had 60 locations, and its 1993 sales topped $300 million. Nearly all the Channel stores were converted into Rickel
Rickel
Rickel was a home improvement store chain based in northern New Jersey. The Rickels' first store opened in 1953 and for three decades Rickel was the leading hardware, plumbing, heating and electrical retailer in its region...
locations, except for one location that was operated in very close proximity to a Rickel store.