Ronald Burkle
Encyclopedia
Ronald Wayne Burkle is an American
business magnate
and investor
. A major political fundraiser, he is listed on the Forbes 400
, with an estimated net worth of $3.2 billion in 2011.
. He got his start in the supermarket business as a bag boy at his father's grocery store. He later dropped out of college and founded Yucaipa Companies, a private equity firm which invests in retail, manufacturing, and distribution. He also founded the Ronald W. Burkle Foundation
Burkle has served as Chairman of the Board and controlling shareholder of numerous companies, including Alliance Entertainment
, Golden State Foods
, Dominick's
, Fred Meyer
, Ralphs
, and Food4Less. He is currently a member of the board of Occidental Petroleum Corporation, KB Home
, and Yahoo!
Burkle is a well-known Democratic
supporter and fundraiser
who raised more than $1,000,000 for the Hillary Clinton presidential campaign. Bill Clinton
is employed by The Yucaipa Companies to help identify possible investment opportunities. He has supported California State Treasurer
Phil Angelides
and employed former San Francisco Mayor
Willie Brown, both of whom are former California Public Employees' Retirement System (CalPERS)
board members, but has also made contributions to California Governor Arnold Schwarzenegger
. Robert Novak
reported in June 2007 that 98 percent of Burkle's $1.5 million political contributions to date have gone to Democrats. Burkle helped finance Al Gore
's cable Current TV
network.
Burkle is also known for a tussle with the New York Post
which tagged him the "Billionaire Party Boy".
National Hockey League
team, although his current share is unknown. He co-owns the franchise with Penguins legend Mario Lemieux
. The Penguins won the Stanley Cup
in 2009.
was an operator of natural foods stores and farmers' markets in North America. Burkle started buying Wild Oats stock in February 2005. By the time Whole Foods Market
, a natural-foods grocer, agreed to pay $565 million for Wild Oats, Burkle was the largest shareholder of Wild Oats.
to St. Louis-based Wetterau Associates for about $110 million. Golden State, one of McDonald's
biggest suppliers, operates 11 distribution centers in the United States and abroad and two U.S. processing plants.
judge dismissed Burkle's lawsuit against Raffaello Follieri, ex-boyfriend of actress Anne Hathaway
, after he agreed to repay $1.3 million Burkle loaned to him in the Vati-Con Scandal
.
columnist Jared Paul Stern
of attempting to extort money from him in exchange for stopping the publication of stories in Page Six, the paper's gossip column, about his private life. Burkle secretly videotaped two private meetings between himself and Stern, with the second meeting orchestrated and monitored by the FBI. Stern allegedly asked Burkle for a $220,000 investment in his clothing business in exchange for better coverage. Stern was subsequently fired by the Post.
Burkle is a fan of historic architecture. In 2011 he purchased the partially restored Ennis House
, a Los Angeles landmark designed by Frank Lloyd Wright
. Burkle also owns Greenacres
, an estate built for Harold Lloyd
. According to a Los Angeles Times article , Burkle aspired to be an architect as a teenager.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
business magnate
Business magnate
A business magnate, sometimes referred to as a capitalist, czar, mogul, tycoon, baron, oligarch, or industrialist, is an informal term used to refer to an entrepreneur who has reached prominence and derived a notable amount of wealth from a particular industry .-Etymology:The word magnate itself...
and investor
Investor
An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc...
. A major political fundraiser, he is listed on the Forbes 400
Forbes 400
The Forbes 400 or 400 Richest Americans is a list published by Forbes Magazine magazine of the wealthiest 400 Americans, ranked by net worth. The list is published annually in September, and 2010 marks the 29th issue. The 400 was started by Malcom Forbes in 1982 and treats those in the list like...
, with an estimated net worth of $3.2 billion in 2011.
Life and career
Burkle was born in Pomona, CaliforniaPomona, California
-2010:The 2010 United States Census reported that Pomona had a population of 149,058, a slight decline from the 2000 census population. The population density was 6,491.2 people per square mile...
. He got his start in the supermarket business as a bag boy at his father's grocery store. He later dropped out of college and founded Yucaipa Companies, a private equity firm which invests in retail, manufacturing, and distribution. He also founded the Ronald W. Burkle Foundation
Burkle has served as Chairman of the Board and controlling shareholder of numerous companies, including Alliance Entertainment
Alliance Entertainment
Alliance Entertainment, LLC is a distributor of music, movies, and game software. From 1995 through 2005, Alliance Entertainment was also the parent company of All Media Guide. In 2005, it merged with Source Interlink. Platinum Equity and the Gores Group acquired Alliance in 2010....
, Golden State Foods
Golden state foods
Golden State Foods started in 1947 as a small meat company to supply products to LA area restaurants and hotels. GSF got its break in the 1950s when it teamed up with McDonald's Corp to provide the giant fast food company with ingredients...
, Dominick's
Dominick's
Dominick's Finer Foods, Inc. is a grocery store chain and subsidiary of Safeway Inc. with locations mainly in the Chicago area, Illinois, USA. Dominick's distribution center is located in Northlake, while its management offices are located in Oak Brook....
, Fred Meyer
Fred Meyer
Fred Meyer, Inc., is a chain of hypermarkets founded in 1922 in Portland, Oregon, by Fred G. Meyer. The company was one of the pioneers of one-stop shopping, eventually combining a complete grocery supermarket with a drugstore, clothing store, shoe store, fine jewelers, home decor store, home...
, Ralphs
Ralphs
Ralphs is a major supermarket chain in the Southern California area and the largest subsidiary of Cincinnati-based Kroger. It is the oldest such chain west of the Mississippi River. Ralphs also operates stores under the Food 4 Less and Foods Co. names in California.-History:Ralphs Grocery Company...
, and Food4Less. He is currently a member of the board of Occidental Petroleum Corporation, KB Home
KB Home
KB Home is a homebuilding company based in the United States, founded in 1957 as Kaufman & Broad in Detroit, Michigan. It was the first company to be traded on the NYSE as a home builder and is a Fortune 500 company...
, and Yahoo!
Yahoo!
Yahoo! Inc. is an American multinational internet corporation headquartered in Sunnyvale, California, United States. The company is perhaps best known for its web portal, search engine , Yahoo! Directory, Yahoo! Mail, Yahoo! News, Yahoo! Groups, Yahoo! Answers, advertising, online mapping ,...
Burkle is a well-known Democratic
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
supporter and fundraiser
Fundraiser
A fundraiser is an event or campaign whose primary purpose is to raise money for a cause. See also: fundraising. A fundraiser can also be an individual or company whose primary job is to raise money for a specific charity or non-profit organization...
who raised more than $1,000,000 for the Hillary Clinton presidential campaign. Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
is employed by The Yucaipa Companies to help identify possible investment opportunities. He has supported California State Treasurer
California State Treasurer
The California State Treasurer is responsible for the state's investment and finance. The post has more narrow responsibilities and authority than the California State Controller...
Phil Angelides
Phil Angelides
Philip Nicholas "Phil" Angelides is an American politician who was California State Treasurer and the unsuccessful Democratic nominee for Governor of California in the 2006 elections...
and employed former San Francisco Mayor
Mayor
In many countries, a Mayor is the highest ranking officer in the municipal government of a town or a large urban city....
Willie Brown, both of whom are former California Public Employees' Retirement System (CalPERS)
CalPERS
The California Public Employees' Retirement System or CalPERS is an agency in the California executive branch that "manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families"...
board members, but has also made contributions to California Governor Arnold Schwarzenegger
Arnold Schwarzenegger
Arnold Alois Schwarzenegger is an Austrian-American former professional bodybuilder, actor, businessman, investor, and politician. Schwarzenegger served as the 38th Governor of California from 2003 until 2011....
. Robert Novak
Robert Novak
Robert David Sanders "Bob" Novak was an American syndicated columnist, journalist, television personality, author, and conservative political commentator. After working for two newspapers before serving for the U.S. Army in the Korean War, he became a reporter for the Associated Press and then for...
reported in June 2007 that 98 percent of Burkle's $1.5 million political contributions to date have gone to Democrats. Burkle helped finance Al Gore
Al Gore
Albert Arnold "Al" Gore, Jr. served as the 45th Vice President of the United States , under President Bill Clinton. He was the Democratic Party's nominee for President in the 2000 U.S. presidential election....
's cable Current TV
Current TV
Current TV, or Current, is a media company led by former U.S. Vice President Al Gore and businessman Joel Hyatt. Comcast owns a ten percent stake of Current's parent company, Current Media LLC....
network.
Burkle is also known for a tussle with the New York Post
New York Post
The New York Post is the 13th-oldest newspaper published in the United States and is generally acknowledged as the oldest to have been published continuously as a daily, although – as is the case with most other papers – its publication has been periodically interrupted by labor actions...
which tagged him the "Billionaire Party Boy".
Pittsburgh Penguins
He is part owner of the Pittsburgh PenguinsPittsburgh Penguins
The Pittsburgh Penguins are a professional ice hockey team based in Pittsburgh, Pennsylvania. They are members of the Atlantic Division of the Eastern Conference of the National Hockey League . The franchise was founded in 1967 as one of the first expansion teams during the league's original...
National Hockey League
National Hockey League
The National Hockey League is an unincorporated not-for-profit association which operates a major professional ice hockey league of 30 franchised member clubs, of which 7 are currently located in Canada and 23 in the United States...
team, although his current share is unknown. He co-owns the franchise with Penguins legend Mario Lemieux
Mario Lemieux
Mario Lemieux, OC, CQ is a Canadian former professional ice hockey player. He is acknowledged to be one of the best players of all time. He played 17 seasons as a forward for the Pittsburgh Penguins of the National Hockey League between 1984 and 2006...
. The Penguins won the Stanley Cup
Stanley Cup
The Stanley Cup is an ice hockey club trophy, awarded annually to the National Hockey League playoffs champion after the conclusion of the Stanley Cup Finals. It has been referred to as The Cup, Lord Stanley's Cup, The Holy Grail, or facetiously as Lord Stanley's Mug...
in 2009.
Wild Oats
Wild Oats MarketsWild Oats Markets
Wild Oats Markets was an operator of natural foods stores and farmers markets in North America. The stores offered dry grocery, meat, poultry, seafood, dairy, frozen, prepared foods, bakery, vitamins and supplements, health and body care, and household items. As of February 21, 2007, it operated...
was an operator of natural foods stores and farmers' markets in North America. Burkle started buying Wild Oats stock in February 2005. By the time Whole Foods Market
Whole Foods Market
Whole Foods Market is a foods supermarket chain based in Austin, Texas which emphasizes "natural and organic products." The company has been ranked among the most socially responsible businesses and placed third on the U.S...
, a natural-foods grocer, agreed to pay $565 million for Wild Oats, Burkle was the largest shareholder of Wild Oats.
Golden State Foods
Burkle sold his majority stake in supplier Golden State FoodsGolden state foods
Golden State Foods started in 1947 as a small meat company to supply products to LA area restaurants and hotels. GSF got its break in the 1950s when it teamed up with McDonald's Corp to provide the giant fast food company with ingredients...
to St. Louis-based Wetterau Associates for about $110 million. Golden State, one of McDonald's
McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...
biggest suppliers, operates 11 distribution centers in the United States and abroad and two U.S. processing plants.
Follieri and the Vati-Con scandal
On April 30, 2008, a DelawareDelaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
judge dismissed Burkle's lawsuit against Raffaello Follieri, ex-boyfriend of actress Anne Hathaway
Anne Hathaway (actress)
Anne Jacqueline Hathaway is an American actress. After several stage roles, she appeared in the 1999 television series Get Real. She played Mia Thermopolis in The Princess Diaries...
, after he agreed to repay $1.3 million Burkle loaned to him in the Vati-Con Scandal
Vati-Con Scandal
Vati-Con is the nickname given to a scandal involving Italian real estate developer Raffaello Follieri, who is accused of misappropriating a $50 million investment from billionaire Ronald Burkle meant to buy up Roman Catholic churches in the United States....
.
Investments and transactions
Burkle's investments and transactions include:- Sold Dominick'sDominick'sDominick's Finer Foods, Inc. is a grocery store chain and subsidiary of Safeway Inc. with locations mainly in the Chicago area, Illinois, USA. Dominick's distribution center is located in Northlake, while its management offices are located in Oak Brook....
chain to SafewaySafeway Inc.Safeway Inc. , a Fortune 500 company, is North America's second largest supermarket chain after The Kroger Co., with, as of December 2010, 1,694 stores located throughout the western and central United States and western Canada. It also operates some stores in the Mid-Atlantic region of the Eastern...
in 1998 for over $200 million in profits; - Owns 20.7% stake in Americold Realty Trust;
- Leveraged buyouts of Jurgensen's, Fred MeyerFred MeyerFred Meyer, Inc., is a chain of hypermarkets founded in 1922 in Portland, Oregon, by Fred G. Meyer. The company was one of the pioneers of one-stop shopping, eventually combining a complete grocery supermarket with a drugstore, clothing store, shoe store, fine jewelers, home decor store, home...
, Food 4 LessFood 4 LessFood 4 Less is a national price-impact warehouse grocery chain, currently owned by Kroger. It is a no-frills grocery store where the customers bag their own groceries at the checkout...
, and RalphsRalphsRalphs is a major supermarket chain in the Southern California area and the largest subsidiary of Cincinnati-based Kroger. It is the oldest such chain west of the Mississippi River. Ralphs also operates stores under the Food 4 Less and Foods Co. names in California.-History:Ralphs Grocery Company...
supermarket chains, and sold to KrogerKrogerThe Kroger Co. is an American supermarket chain founded by Bernard Kroger in 1883 in Cincinnati, Ohio. It reported US$ 76.7 billion in sales during fiscal year 2009. It is the country's largest grocery store chain and its second-largest grocery retailer by volume and second-place general retailer...
for $13.5 billion; - Signed Fleming as sole food supplier to KmartKmartKmart, sometimes styled as "K-Mart," is a chain of discount department stores. The chain acquired Sears in 2005, forming a new corporation under the name Sears Holdings Corporation. The company was founded in 1962 and is the third largest discount store chain in the world, behind Wal-Mart and...
; - Majority stake in PathmarkPathmarkPathmark is a supermarket chain headquartered in Montvale, New Jersey. It was founded in 1968 when its then parent, Supermarkets General Corporation, pulled out of the ShopRite retailers' cooperative...
grocery stores; - CyrkCyrk (Company)Cyrk was once one of the largest promotions companies in the world with over 2000 employes worldwide. The company's stock was listed on NASDAQ under the ticker symbol CYRK....
, the former Beanie BabyBeanie BabyA Beanie Baby is a stuffed animal, made by Ty Warner Inc., which was later renamed as Ty Inc. in late 1993. Each toy has an inner "posable lining" and is stuffed with plastic pellets rather than conventional stuffing , giving Beanie Babies a flexible feel.The original nine Beanie Babies launched...
promotion agency; - Merged Alliance EntertainmentAlliance EntertainmentAlliance Entertainment, LLC is a distributor of music, movies, and game software. From 1995 through 2005, Alliance Entertainment was also the parent company of All Media Guide. In 2005, it merged with Source Interlink. Platinum Equity and the Gores Group acquired Alliance in 2010....
with Source Interlink; - Invested $100 million in Sean CombsSean CombsSean John Combs , also known by his stage names Diddy and P. Diddy, is an American rapper, singer, record producer, actor, and entrepreneur. He has won three Grammy Awards and two MTV Video Music Awards, and his clothing line earned a Council of Fashion Designers of America award. He was originally...
's (P. Diddy) Sean JohnSean JohnSean John Clothing Inc is a clothing and fragrance company owned by hip-hop mogul Sean Combs. The apparel company takes its name from Combs' first and middle given names....
clothing line; - Purchased Enthusiast Media publications and assets of PrimediaPrimediaPRIMEDIA Inc. is privately held American media company fully owned by TPG Capital.Consumer Source Inc. is the sole operating division of PRIMEDIA and helps millions of consumers find apartments, houses for rent, and new homes for sale through its Internet, mobile, and print products...
for $1.2 billion; - Burkle's investment firm, Yucaipa Cos.Yucaipa Cos.The Yucaipa Companies, LLC is a Los Angeles-based holding company, focusing on private equity investments. The firm was founded in 1986 by its billionaire chairman, Ronald Burkle....
, owns 18.7% of the common stock of Barnes & NobleBarnes & NobleBarnes & Noble, Inc. is the largest book retailer in the United States, operating mainly through its Barnes & Noble Booksellers chain of bookstores headquartered at 122 Fifth Avenue in the Flatiron District in Manhattan in New York City. Barnes & Noble also operated the chain of small B. Dalton...
. In early 2010 he sought to raise his stake to 37% without triggering the shareholders' rights plan; Chairman Len Riggio, with 27.8% ownership of the bookseller's common stock, is Barnes & NobleBarnes & NobleBarnes & Noble, Inc. is the largest book retailer in the United States, operating mainly through its Barnes & Noble Booksellers chain of bookstores headquartered at 122 Fifth Avenue in the Flatiron District in Manhattan in New York City. Barnes & Noble also operated the chain of small B. Dalton...
's largest shareholder; - Donated $750 million to the Renner Burkle Fund;
- Owns 6% stake in American ApparelAmerican ApparelAmerican Apparel is a clothing manufacturer in the United States. It is a vertically integrated clothing manufacturer, wholesaler, and retailer that also performs its own design, advertising, and marketing...
, Inc. - In an attempted transaction, Burkle made an offer to purchse the financially-troubled Sacramento KingsSacramento KingsThe Sacramento Kings are a professional basketball team based in Sacramento, California, United States. They are currently members of the Western Conference of the National Basketball Association...
franchise and prevent the team from relocating to Anaheim; Burkle's plan was rejected by the current owners, Joe and Gavin Maloof.
Payola scandal
In April 2006, Burkle accused New York PostNew York Post
The New York Post is the 13th-oldest newspaper published in the United States and is generally acknowledged as the oldest to have been published continuously as a daily, although – as is the case with most other papers – its publication has been periodically interrupted by labor actions...
columnist Jared Paul Stern
Jared Paul Stern
Jared Paul Stern is a freelance reporter and former columnist for the New York Post who gained national notoriety when he was accused by California businessman Ron Burkle of extortion. Prior to the scandal, Stern had written for the popular "Page Six" column for 11 years...
of attempting to extort money from him in exchange for stopping the publication of stories in Page Six, the paper's gossip column, about his private life. Burkle secretly videotaped two private meetings between himself and Stern, with the second meeting orchestrated and monitored by the FBI. Stern allegedly asked Burkle for a $220,000 investment in his clothing business in exchange for better coverage. Stern was subsequently fired by the Post.
Relationship with Organized Labor
Ron has received numerous honors and awards from labor including the AFL-CIO Murray Green Meany Kirkland Community Service Award and The Los Angeles County Federation of Labor Man of the Year.Personal
Ron is the divorced father of three adult children.Burkle is a fan of historic architecture. In 2011 he purchased the partially restored Ennis House
Ennis House
The Ennis House is a residential dwelling in the Los Feliz neighborhood of Los Angeles, California, USA, south of Griffith Park. The home was designed by Frank Lloyd Wright for Charles and Mabel Ennis in 1923, and built in 1924....
, a Los Angeles landmark designed by Frank Lloyd Wright
Frank Lloyd Wright
Frank Lloyd Wright was an American architect, interior designer, writer and educator, who designed more than 1,000 structures and completed 500 works. Wright believed in designing structures which were in harmony with humanity and its environment, a philosophy he called organic architecture...
. Burkle also owns Greenacres
Harold Lloyd Estate
The Harold Lloyd Estate, also known as Greenacres, is a large mansion and landscaped estate located in the Benedict Canyon section of Beverly Hills, California. Built in the latter 1920s by silent film star Harold Lloyd, it remained Lloyd's home until his death in 1971. The estate originally...
, an estate built for Harold Lloyd
Harold Lloyd
Harold Clayton Lloyd, Sr. was an American film actor and producer, most famous for his silent comedies....
. According to a Los Angeles Times article , Burkle aspired to be an architect as a teenager.
External links
- The Ronald W. Burkle Center for International Relations at UCLA
- Ronald W. Burkle Foundation
- The Yucaipa Companies
- Ron Burkle's federal campaign contributions at newsmeat.com
- Forbes - The 400 Richest Americans 2005
- Ennis House
- The Complete Ron Burkle Jason Horowitz, The New York Observer April 12, 2007
- Gore reinvents television with the debut of Current Jennifer Harper, The Washington Times, August 2, 2005
- Yellow Peril Ron Burkle, Wall Street Journal, April 19, 2006, about the Payola Six Scandal
- Billionaire and Post Writer in Dance of Tips and Turns New York Times, April 12, 2006
- Ex-Post Keyholer Says He’s Cleared on Extortion Rap Choire Sicha, The New York Observer, January 29, 2007
- Burkle's Source Agrees to Buy Primedia Magazine Group (Update4) Leon Lazaroff, Bloomberg.com, May 14, 2007
- Dow Jones Union Asks Tycoons to explore Alternatives to News Corp Bid Forbes, 1 October 2007
- Clintons Earned $109 Million in 8 Years Washington Post, 5 April 2008
- Aloha Bankruptcy Scheme Approved BBC News, 30 November 2005; accessed 31 March 2008