Robert Campeau
Encyclopedia
Robert Campeau is a Canadian
financier
and real estate
developer.
and machinist
. In 1949 he entered the residential end of the construction
business. His first project was a single home constructed in partnership with his cousin in Ottawa
, Ontario
.
. Campeau frequently found himself at odds with Ottawa mayor Charlotte Whitton
over planning decisions. Whitton was quoted as saying, "when I look at his (Campeau's) houses, I think perhaps nuclear bombardment might not be such a terrible thing after all." His Campeau Corporation had two main rivals in the residential housing market: Assaly Construction Limited and Minto Developments Inc., the latter owned by the family of future Ottawa mayor Lorry Greenberg
. Despite opposition from Whitton, Campeau developed a reputation as a high-quality builder and became the most successful in the city. A street is named after him in the Ottawa suburb of Kanata
, much of which he developed.
For many years it was city policy that buildings in the downtown core not be taller than the Peace Tower
of the parliament buildings
. Campeau found this rule to be unnecessary and was drawn into conflict with city council over large high-rise developments such as Place de Ville
.
Due to his relationships with many civil servants and ministers, he was able to have most of his projects approved. He counted amongst his personal friends politicians like Jean Chrétien
, Jean Marchand
, André Ouellet, Marc Lalonde
, and Michael Pitfield
. Campeau's real estate development success soon spread outside Ottawa. In Toronto his developments included Scotia Tower
(the city's second tallest skyscraper) and the Harbour Castle Hotel
(now part of the Westin Hotels
chain).
s (LBOs), first bidding unsuccessfully on the Royal Trust company (now part of the Royal Bank
).
As his business expanded, Campeau ventured into the United States
, looking for acquisitions that would add shopping mall real estate to his portfolio of assets. Through junk bond LBOs which were at their most popular in the mid 1980s, his Campeau Corporation
gained control of Allied Stores
and Federated Department Stores
, owner of Bloomingdale's
. Campeau retained famous banker Bruce Wasserstein
to assist with the transactions. However, the debt obligations that needed to be covered following the merger were too large and exacerbated by a market downturn that hurt retail sales; Campeau Corporation was unable to meet its debt obligations. Federated and Allied eventually filed for bankruptcy reorganization. The company was eventually acquired by the Reichman brothers who went bankrupt themselves and Campeau Corporation ceased to exist.
"Any corporate executive can figure out how to file for bankruptcy when the bottom drops out of the business. It took the special genius of Robert Campeau, chairman of the Campeau Corporation, to figure out how to bankrupt more than 250 profitable department stores. The dramatic jolt to Bloomingdale's, Abraham & Straus, Jordan Marsh and the other proud stores reflects his overreaching grasp and oversized ego"
In 1996, Campeau and his wife Ilsa, mother of 3 of his children separated. While she stayed in Austria, he first lived in Berlin (presidential suite of Four Seasons Hotel) with Christel Dettmann, a former East German politician, and then he returned to live in Ottawa in 2001 together with Christel.
The divorce proceedings went on for many years, Ilsa's pleadings were struck and in the end, an Ontario judge, ruled in his favour.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
financier
Financier
Financier is a term for a person who handles typically large sums of money, usually involving money lending, financing projects, large-scale investing, or large-scale money management. The term is French, and derives from finance or payment...
and real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
developer.
Early years
His formal education ended in grade eight, at the age of 14. He talked himself into jobs at Inco as a general labourer, carpenterCarpenter
A carpenter is a skilled craftsperson who works with timber to construct, install and maintain buildings, furniture, and other objects. The work, known as carpentry, may involve manual labor and work outdoors....
and machinist
Machinist
A machinist is a person who uses machine tools to make or modify parts, primarily metal parts, a process known as machining. This is accomplished by using machine tools to cut away excess material much as a woodcarver cuts away excess wood to produce his work. In addition to metal, the parts may...
. In 1949 he entered the residential end of the construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
business. His first project was a single home constructed in partnership with his cousin in Ottawa
Ottawa
Ottawa is the capital of Canada, the second largest city in the Province of Ontario, and the fourth largest city in the country. The city is located on the south bank of the Ottawa River in the eastern portion of Southern Ontario...
, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
.
Real estate development
In Ottawa, Campeau was able to construct both office complexes and residential subdivisions to accommodate Canada's rapidly expanding civil serviceCivil service
The term civil service has two distinct meanings:* A branch of governmental service in which individuals are employed on the basis of professional merit as proven by competitive examinations....
. Campeau frequently found himself at odds with Ottawa mayor Charlotte Whitton
Charlotte Whitton
Charlotte Elizabeth Whitton, OC, CBE was a Canadian feminist and mayor of Ottawa. She was the first female mayor of a major city in Canada, serving from 1951 to 1956 and again from 1960 to 1964...
over planning decisions. Whitton was quoted as saying, "when I look at his (Campeau's) houses, I think perhaps nuclear bombardment might not be such a terrible thing after all." His Campeau Corporation had two main rivals in the residential housing market: Assaly Construction Limited and Minto Developments Inc., the latter owned by the family of future Ottawa mayor Lorry Greenberg
Lorry Greenberg
Lawrence "Lorry" Greenberg was Mayor of Ottawa, Ontario from 1975 to 1978.He graduated from Lisgar Collegiate in 1952.jl He was one of the founding members of Minto Developments Inc., but left the company in 1960...
. Despite opposition from Whitton, Campeau developed a reputation as a high-quality builder and became the most successful in the city. A street is named after him in the Ottawa suburb of Kanata
Kanata, Ontario
Situated in the Ottawa Valley, Kanata is located about west-southwest of Downtown Ottawa along Highway 417 at a latitude of 45°18' North and a longitude of 75°55' West, with an area of . Its northern end is just to the west of the Ottawa River....
, much of which he developed.
For many years it was city policy that buildings in the downtown core not be taller than the Peace Tower
Peace Tower
The Peace Tower is a focal bell and clock tower, sitting on the central axis of the Centre Block of the Canadian parliament buildings in Ottawa, Ontario. The present incarnation replaced the Victoria Tower after the latter burned down in 1916, along with most of the Centre Block...
of the parliament buildings
Parliament Hill
Parliament Hill , colloquially known as The Hill, is an area of Crown land on the southern banks of the Ottawa River in downtown Ottawa, Ontario. Its Gothic revival suite of buildingsthe parliament buildings serves as the home of the Parliament of Canada and contains a number of architectural...
. Campeau found this rule to be unnecessary and was drawn into conflict with city council over large high-rise developments such as Place de Ville
Place de Ville
Place de Ville is a complex of office towers in downtown Ottawa. It currently consists of four buildings, Place de Ville A, B, and C, and the 'Podium' building, two large hotels, and the city's largest underground parking garage. The buildings are linked by an underground shopping complex...
.
Due to his relationships with many civil servants and ministers, he was able to have most of his projects approved. He counted amongst his personal friends politicians like Jean Chrétien
Jean Chrétien
Joseph Jacques Jean Chrétien , known commonly as Jean Chrétien is a former Canadian politician who was the 20th Prime Minister of Canada. He served in the position for over ten years, from November 4, 1993 to December 12, 2003....
, Jean Marchand
Jean Marchand
Jean Marchand, PC, CC was a well known French Canadian public figure, trade unionist and politician in Quebec, Canada....
, André Ouellet, Marc Lalonde
Marc Lalonde
Marc Lalonde, PC, OC, QC is a retired Canadian politician and Cabinet minister.Lalonde was born in Île Perrot, Quebec and obtained a Master of Laws degree from the Université de Montréal, a Master's degree from Oxford University, and a Diplôme d'études supérieures en droit from the University of...
, and Michael Pitfield
Michael Pitfield
Peter Michael Pitfield, PC, CVO is a former Canadian Senator and senior civil servant.He is the youngest son of the late Canadian financier Ward C. Pitfield and the late Grace MacDougall Pitfield. His brother, Ward C...
. Campeau's real estate development success soon spread outside Ottawa. In Toronto his developments included Scotia Tower
Scotia Plaza
Scotia Plaza is a Postmodern commercial office complex in the city of Toronto, Ontario, Canada. The complex is situated in the financial district of the downtown core, and is generally bordered by Yonge Street on the east, King Street West on the south, Bay Street on the west, and Adelaide Street...
(the city's second tallest skyscraper) and the Harbour Castle Hotel
Westin Harbour Castle Hotel
The Westin Harbour Castle Hotel is a large, modern hotel located on 1 Harbour Square, next to the waterfront of Toronto, Ontario, Canada. It is part of the Westin Hotels chain....
(now part of the Westin Hotels
Westin Hotels
Westin Hotels & Resorts are an upscale hotel chain owned by Starwood Hotels & Resorts Worldwide. As of 2011, Westin operated over 160 hotels in 37 countries.-History:...
chain).
Corporate take-overs
In the 1980s Campeau embarked on a series of leveraged buyoutLeveraged 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...
s (LBOs), first bidding unsuccessfully on the Royal Trust company (now part of the Royal Bank
Royal Bank of Canada
The Royal Bank of Canada or RBC Financial Group is the largest financial institution in Canada, as measured by deposits, revenues, and market capitalization. The bank serves seventeen million clients and has 80,100 employees worldwide. The company corporate headquarters are located in Toronto,...
).
As his business expanded, Campeau ventured into the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, looking for acquisitions that would add shopping mall real estate to his portfolio of assets. Through junk bond LBOs which were at their most popular in the mid 1980s, his Campeau Corporation
Campeau Corporation
Campeau Corporation was a Canadian real estate development and investment company founded by entrepreneur Robert Campeau. It was infamous from its ultimately unsuccessful acquisitions of American department store holding companies Allied Stores in 1986 and Federated Department Stores in 1988...
gained control of Allied Stores
Allied Stores
Allied Stores was a department store chain in the United States. It was founded in the 1930s as part of a general consolidation in the retail sector by B. E. Puckett. See also Associated Dry Goods. It was the successor to Hahn's Department Stores, a holding company founded in 1928...
and Federated Department Stores
Federated Department Stores
Macy's, Inc. is a department store holding company and owner of Macy's and Bloomingdale's department stores. Macy's Inc.'s stores specialize mostly in retail clothing, jewelery, watches, dinnerware, and furniture....
, owner of Bloomingdale's
Bloomingdale's
Bloomingdale's is an American department store owned by Macy's, Inc. .Bloomingdale's started in 1861 when brothers Joseph and Lyman G. Bloomingdale started selling hoop-skirts in their Ladies Notions' Shop on Manhattan's Lower East Side...
. Campeau retained famous banker Bruce Wasserstein
Bruce Wasserstein
Bruce Jay Wasserstein was an American investment banker and businessman. He was a graduate of the McBurney School, University of Michigan, Harvard Business School, and Harvard Law School, and spent a year at Cambridge University...
to assist with the transactions. However, the debt obligations that needed to be covered following the merger were too large and exacerbated by a market downturn that hurt retail sales; Campeau Corporation was unable to meet its debt obligations. Federated and Allied eventually filed for bankruptcy reorganization. The company was eventually acquired by the Reichman brothers who went bankrupt themselves and Campeau Corporation ceased to exist.
"Any corporate executive can figure out how to file for bankruptcy when the bottom drops out of the business. It took the special genius of Robert Campeau, chairman of the Campeau Corporation, to figure out how to bankrupt more than 250 profitable department stores. The dramatic jolt to Bloomingdale's, Abraham & Straus, Jordan Marsh and the other proud stores reflects his overreaching grasp and oversized ego"
Personal life
Campeau resided in a lakeside castle in Austria and he became involved in some real estate projects, including developing a large subdivision in Teltow (former GDR) near Berlin, Germany. That project failed and Campeau's company went bankrupt 2001. The funds of the charitable foundation (Robert Campeau Family Foundation) used in his business were lost.In 1996, Campeau and his wife Ilsa, mother of 3 of his children separated. While she stayed in Austria, he first lived in Berlin (presidential suite of Four Seasons Hotel) with Christel Dettmann, a former East German politician, and then he returned to live in Ottawa in 2001 together with Christel.
The divorce proceedings went on for many years, Ilsa's pleadings were struck and in the end, an Ontario judge, ruled in his favour.