Hechinger

Hechinger
Private
Industry Retail
Founded
Founder Sidney L. Hechinger
Defunct 1999 (home improvement retail)
2009 (online retailer)
Headquarters Landover, Maryland, U.S.
Products Lumber, tools, hardware, garden supplies and plants
Website None

The Hechinger Company was an American chain of home-improvement centers headquartered in Landover, Maryland, on the immediate outskirts of Washington, D.C., from 1911 to 1999. It was also an online retailer owned by Home Decor Products, from 2004 to 2009.

History

A Hechinger Store in Wilkes-Barre, Pennsylvania, in 1999.

Sidney L. Hechinger had initially established himself in the home-wrecking and salvage business in 1911, and in 1919 opened his first hardware store in Southwest Washington, D.C.[1]

Sidney Hechinger focused his hardware business exclusively on retail customers in 1924, eschewing contractors and builders.[2] His decision foresaw the rise of the home improvement industry before the sector even had a name.

The five-store company reorganized in 1953, with Sidney's son John and son-in-law Richard England becoming partners in the company, which was divided into a retail hardware business and a wholesale building supplies company, the latter being called Richard England Associates.[3] John also served on the City Council of Washington.

In 1972, John Hechinger, Sr. and brother-in-law Richard England took the ten-store company public with an offering of 400,000 shares.[1][4]

John Hechinger, Jr. became the third generation of Hechingers to head the company when he was named president of the 54-store chain in 1986.[2][5] Later that year, Hechinger Co. announced plans to reincorporate in Delaware, which was approved in a January 1987 shareholders' meeting.[6][7]

Hechinger had grown to a 69-store chain by the time it made its December 1987 offer to acquire the six stores of Virginia Beach, Virginia-based Home Quarters Warehouse (HQ) for $66 million.[8] HQ had been founded in 1984 by W.R. Grace & Co. in the mold of big-box stores such as Home Depot, and operated as a separate division of Hechinger Co.

In the 1980s, it underwent a massive expansion of both HQ and the Hechinger Co. divisions, opening big-box stores to better compete with rivals Home Depot and Lowe's.

In January 1995, Hechinger announced it would close or reformat 22 of its 131 stores, including closing all 14 of the Home Quarters Warehouse stores in North and South Carolina.[9] In August of that year, Hechinger Co. consolidated HQ with Hechinger in a further restructuring.[10]

Searching for a niche, Hechinger management in 1997 launched new, smaller concept stores such as Better Spaces in Albany, New York in February and Wye River Hardware & Home in Wheaton and Rockville in August.[11][12]

In July 1997, Los Angeles, California-based investors Leonard Green & Partners announced plans to buy Hechinger Co. for $3 per share, or about $127 million, intending to merge Hechinger with Builders Square, which it had purchased from Kmart for $10 million.[13] However, when Hechinger posted a second quarter loss of $40.6 million in August, Leonard Green cut their offer price, and ultimately purchased Hechinger Company for $2.375 per share, or about $100.2 million, in September 1997.[14][15][16]

After several rounds of store closings, the Hechinger Company filed for Chapter 11 bankruptcy protection on June 11, 1999, but the reorganization failed.[17] Later that year, in September 1999, Hechinger's assets were liquidated, including its 117 remaining stores.[18]

In 2004, Home Decor Products bought the Hechinger brand name and opened an online retailer the following year,[19] which sold the same products as the former brand. On February 5, 2009, it was announced that the site would shut down and Hechinger would no longer sell tools. The site closed shortly thereafter.

References

  1. 1 2 Chamis, Eleni (24 June 2002). "The original do-it-yourselfer". Washington Business Journal. Retrieved 2 October 2015.
  2. 1 2 Pressler, Margaret Webb (21 July 1997). "The Fall of the House of Hechinger; Slow Reaction to Competition in the Market That It Created Led to a Swift Decline". Washington Times. Retrieved 3 October 2015 – via General OneFile. (subscription required (help)).
  3. ↑ "2 Units to Run Business of Hechinger Co.". The Washington Post. 28 June 1953. Retrieved 2 October 2015 – via Proquest. (subscription required (help)).
  4. ↑ Samuelson, Robert J. (10 June 1972). "Hechinger Plans Stock Offering, New Facilities". The Washington Post. Retrieved 2 October 2015 – via Proquest. (subscription required (help)).
  5. ↑ "Hechinger Executive's Son Named to Post of President". The Wall Street Journal. 9 January 1986. Retrieved 3 October 2015 – via Proquest. (subscription required (help)).
  6. ↑ "Hechinger Co. Reincorporation". The Wall Street Journal. 25 November 1986. Retrieved 3 October 2015 – via Proquest. (subscription required (help)).
  7. ↑ "Hechinger to Reincorporate". The Wall Street Journal. 23 January 1987. Retrieved 3 October 2015 – via Proquest. (subscription required (help)).
  8. ↑ Mayer, Caroline E. (1987-12-18). "HECHINGER'S TO PURCHASE VA. CHAIN". The Washington Post. ISSN 0190-8286. Retrieved 2015-10-02.
  9. ↑ Bird, Laura (12 January 1995). "Hechinger to Close Stores, Cut 8% Of Its Work Force". The Wall Street Journal. Retrieved 1 October 2015 – via Proquest. (subscription required (help)).
  10. ↑ Peck, Jeanne (24 August 1995). "Hq To Merge With Hechinger". Daily Press. Retrieved 1 October 2015.
  11. ↑ Pressler, Margaret Webb (1997-04-20). "HECHINGER TRIES TO REBUILD ITSELF". The Washington Post. ISSN 0190-8286. Retrieved 2015-10-03.
  12. ↑ Lundegaard, Karen M. (1 September 1997). "Hechinger's name left off new concept". Washington Business Journal. Retrieved 3 October 2015.
  13. ↑ Kilman, Scott (18 July 1997). "Kmart to Sell Builders Square To a Los Angeles Company". Wall Street Journal. ISSN 0099-9660. Retrieved 3 October 2015.
  14. ↑ Brownlee, Lisa (29 August 1997). "Hechinger's posts loss for quarter; Offer price is cut". The Wall Street Journal. Retrieved 3 October 2015 – via Proquest. (subscription required (help)).
  15. ↑ Bowie, Liz (29 August 1997). "Hechinger Agrees to Cut Sale Price by 21%". Los Angeles Times. ISSN 0458-3035. Retrieved 3 October 2015.
  16. ↑ "Hechinger Company Sold to Leonard Green & Partners, L.P." (Press release). 25 September 2015. Retrieved 1 October 2015.
  17. ↑ Murray, Shannon D. (12 June 1999). "Hechinger files for bankruptcy protection". The Baltimore Sun. Retrieved 2 October 2015.
  18. ↑ Johnston, Erica (1999-09-12). "The Region In Review". The Washington Post. ISSN 0190-8286. Retrieved 2015-10-01.
  19. ↑ Kelly, John, "A Familiar Brand, Reborn in Pixels", The Washington Post, March 28, 2006
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