Harold's

Harold's Stores, Inc. was an American specialty-apparel retailer founded in Norman, Oklahoma, in 1948 by Harold G. Powell. The business began as a men's clothing store and developed into a regional chain serving customers who wanted classic, relatively high-end clothing rather than rapidly changing fashion. Its stores were generally placed in affluent neighborhoods, shopping centers, and other higher-income retail locations across the southern, western, and Midwestern United States. The core customer was broadly described as being between 30 and 50 years old, and the assortment combined traditional styling with the service expectations of a specialty department store. The company expanded beyond its original men's focus in 1958, when it added women's apparel. Over time, Harold's sold clothing and related merchandise under its own retail identity, with offerings spanning men's and women's apparel, accessories, and seasonal collections. Its Norman operations included distribution and other operational functions, while buying offices were later moved to Dallas. The company also developed supporting retail channels: it introduced a proprietary credit card in 1977 and mailed its first clothing catalog in 1990. Catalog and later Internet ordering became an attempted extension of the store network, although the company eventually suspended those activities after they generated losses. Harold's grew substantially during the late twentieth century. In 1999 it reportedly operated 53 stores in 22 states. Its peak workforce reached approximately 1,800 people, and annual sales were reported to have exceeded $150 million. The company became publicly traded in 1987. Its expansion nevertheless left it exposed to changing consumer preferences, competition from larger national retailers, and the difficulty of maintaining a traditional apparel position while attracting younger shoppers. A later effort to introduce more youthful styles appears to have weakened the connection with some of its established customers. The business also experienced management and ownership changes. Founder Harold G. Powell relinquished the chief executive role in the 1990s, and his daughter Rebecca Powell Casey, a longtime employee and former president, became a central figure in the company's leadership. In the early 2000s, preferred shareholders Howard Lester and Ronald de Waal gained control and provided loans intended to keep the retailer operating. The company moved its headquarters to Dallas in 2001 while continuing to base distribution and operations in Norman. Leadership changed repeatedly during the period, including the appointments of Clark Hinkley, Hugh Mullins, and Ronald S. Staffieri. Harold's entered a severe decline in the mid-2000s. Hurricanes in 2005 harmed stores in three southern states, while broader competitive and economic pressures continued to weigh on sales. The company reported losses of $6 million in 2005 and $11 million in 2006, and its stock was delisted from the American Stock Exchange in 2006. By the time of its bankruptcy filing, the chain had been reduced to 43 stores in 19 states and employed 624 people, about half of them part-time. On November 10, 2008, Harold's Stores and six related companies received court approval for liquidation. The company cited increased competition and a weak economy, and merchandise liquidators were the only parties reported to have expressed meaningful interest in the business. The case was initially associated with Chapter 11 but was converted to Chapter 7 liquidation in March 2009. Harold's retail operations subsequently disappeared. Later bankruptcy litigation concerning alleged payments to preferred shareholders and the conduct of directors and officers ended in a $2 million settlement in 2014. Powell, who had sold most of his stock before the collapse, died in 2016. The former Norman flagship site was later used by the University of Oklahoma for information-technology and meeting functions.

Harold's began in 1948 when Harold G. Powell established a men's clothing business in Norman, Oklahoma. Its original proposition centered on classic, traditional menswear and personalized service. Rather than competing primarily through low prices or rapidly changing fashion, the retailer pursued an upscale regional niche and located stores in affluent areas and shopping centers. This approach gave Harold's a recognizable identity in parts of the southern, western, and Midwestern United States. The company broadened its commercial scope in 1958 by introducing women's apparel. That move transformed Harold's from a men's specialist into a two-sided clothing retailer while retaining its traditional styling. It later developed additional customer and distribution channels, including a proprietary credit card in 1977 and a catalog operation launched in 1990. Buying offices were moved to Dallas, while distribution and operational functions remained associated with Norman. The business became publicly traded in 1987 and continued expanding during the late twentieth century. By 1999, Harold's operated 53 stores in 22 states. Its strongest period was supported by a substantial store base, a workforce that at one point reached about 1,800 employees, and reported annual sales above $150 million. The company targeted customers generally between 30 and 50 years old and sold men's and women's clothing, accessories, and seasonal merchandise. A naming issue arose in Houston because another retailer founded by Harold Wiesenthal had operated there under a similar name since 1950. The local Harold's stores used the name Harold Powell under a 1992 arrangement, and a 1996 lawsuit was settled before trial through an agreement concerning the appearance of catalogs delivered in Houston. Leadership changed significantly in the 1990s and 2000s. Powell stepped away from company leadership in 1998, after his daughter Rebecca Powell Casey had served as president and chief executive. Clark Hinkley became chief executive in 2001, the same year headquarters moved to Dallas and the company suspended catalog and Internet ordering because those channels were losing money. Preferred shareholders Howard Lester and Ronald de Waal exercised substantial influence and supplied loans during the company's later years. Harold's attempted to attract younger consumers by adding newer styles, but the change reportedly alienated some of its established clientele. Catalog sales returned in 2003 after a period of improving store results. Hugh Mullins became chief executive in 2004, resigned in 2005, and was followed by Hinkley's interim return. Ronald S. Staffieri became chief executive in 2006. The retailer's financial position deteriorated amid stronger competition, a weak economic environment, and operational difficulties. Hurricanes in 2005 caused additional losses at stores in three southern states. Harold's reported losses of $6 million in 2005 and $11 million in 2006, and its stock was delisted from the American Stock Exchange in 2006. By 2008, the chain had contracted to 43 stores in 19 states and employed 624 people. In November of that year, Harold's Stores and six related entities were granted liquidation protection. The company said that competition and the weak economy made continued operation impossible. Liquidation followed, and the case was converted to Chapter 7 in March 2009. The collapse generated subsequent litigation. In 2009, the bankruptcy trustee sued directors and officers, alleging that nearly $6 million in dividends had been improperly paid to preferred shareholders while the company was indebted and that shareholder loans had been made without adequate consideration of alternatives. The dispute ended in a $2 million settlement in 2014, without a trial determination of all allegations. The former Norman flagship was later repurposed by the University of Oklahoma, while Powell's long-associated carousel-horse mascot remained in the family's possession for a period after the company closed.

1. 2014Post-bankruptcy lawsuit settles

   Litigation concerning dividends and shareholder loans concludes with a $2 million settlement.

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2. 2009Case converts to Chapter 7

   The bankruptcy proceeding is converted to Chapter 7 liquidation.

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3. 2008Liquidation is approved

   Harold's Stores and six related companies are granted bankruptcy liquidation on November 10.

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4. 2006Stock is delisted

   Harold's shares are delisted from the American Stock Exchange amid financial distress.

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5. 2001Headquarters moves to Dallas

   Corporate headquarters relocates to Dallas while Norman retains distribution and operational functions.

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6. 1999Expansion reaches 53 stores

   The chain is reported to have 53 stores in 22 states.

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7. 1990First clothing catalog is issued

   The retailer launches a catalog channel.

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8. 1987Company becomes publicly traded

   Harold's becomes a public company during its expansion period.

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9. 1977Proprietary credit card introduced

   Harold's issues its own retail credit card.

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10. 1958Women's apparel is added

    The company expands beyond menswear by adding women's clothing.

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11. 1948Harold's is founded in Norman

    Harold G. Powell establishes the retailer in Norman, Oklahoma as a men's clothing business.

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A regional upscale specialty-apparel retailer emphasizing classic styling, established-customer service, and shopping-center locations in affluent American markets.

• Men's apparelApparel1948

  Men's clothing was Harold's original and defining assortment. The retailer emphasized traditional, classic styling aimed at established professional and mature customers. Stores carried the kinds of apparel associated with an upscale specialty men's-wear business, supported by a service-oriented retail environment rather than a discount-led proposition.

• Women's apparelApparel1958

  Introduced in 1958, women's apparel broadened Harold's from a men's specialist into a full specialty-clothing retailer. The women's assortment followed the brand's preference for classic and traditionally styled clothing, although later attempts to introduce more youthful fashion were associated with tension between attracting new shoppers and retaining the established customer base.

• Catalog assortmentDirect-to-consumer retail1990

  Harold's began issuing clothing catalogs in 1990 as an extension of its store network. Catalog and Internet ordering were later suspended in 2001 because the channels were unprofitable, then reinstated in 2003 after improving store sales. The catalog business ended with the company's liquidation.

• 2008Proceed with liquidationOther

  Harold's faced increased competition, a weak economy, store losses following hurricanes, and continuing financial distress.

  What changed. The company and six related entities were granted bankruptcy liquidation on November 10, 2008.

  Aftermath. The filing was converted to Chapter 7 in March 2009, ending the chain's retail operations.

  Assets and liabilities. Listed in the range of $10 million to $50 million at the bankruptcy filing (2008)

  Source
• 2003Reinstate catalog salesStrategy

  After suspending catalog and Internet ordering in 2001, the company reported seven consecutive months of store sales increases.

  What changed. Harold's resumed catalog sales as an additional route to customers.

  Aftermath. The renewed channel did not prevent the company's later contraction and liquidation.

  Source
• 2001Suspend catalog and Internet orderingStrategy

  The direct-ordering channels had been losing money as the company faced increasing competitive pressure.

  What changed. Harold's stopped catalog and Internet ordering activities and concentrated on its physical stores.

  Aftermath. Catalog sales were later restarted in 2003, following a period of improving store sales.

  Source

• 2009Bankruptcy trustee challenges dividends and shareholder loansControversy

  A bankruptcy trustee sued Harold's directors and officers, alleging that nearly $6 million in dividends had been paid to preferred shareholders while the company was indebted and that loans from preferred shareholders had been made in bad faith or without sufficient consideration of alternatives. The defendants denied the claims, and the dispute was settled out of court for $2 million in 2014.

  Source

• 2009Bankruptcy case converts to Chapter 7

  The company's bankruptcy proceeding was converted to Chapter 7 liquidation in March.

  Bankruptcy
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• 2008Harold's receives liquidation approval

  Harold's Stores and six related companies were granted bankruptcy liquidation on November 10 after citing competition and a weak economy.

  Bankruptcy
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• 2006Harold's stock is delisted

  The company's shares were delisted from the American Stock Exchange amid continuing financial deterioration.

  Bankruptcy
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• 2003Harold's reinstates catalog sales

  After reporting a period of improving store sales, Harold's resumed catalog activity.

  Other
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• 2001Harold's suspends catalog and Internet ordering

  The company stopped catalog and online ordering after those channels produced losses, refocusing on its stores.

  Other
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• 1996Harold's resolves Houston naming dispute

  After a dispute with Harold's Men's Wear founder Harold Wiesenthal over customer confusion in Houston, Powell's company agreed to use a different catalog cover in that market.

  Lawsuit
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• 1990Harold's launches its first clothing catalog

  The chain introduced catalog sales to extend its apparel business beyond physical stores.

  Product launch
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• 1987Harold's becomes a public company

  Harold's Stores became publicly traded as it expanded its regional specialty-retail business.

  Other
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• 1958Harold's adds women's apparel

  The retailer expanded from its original men's-wear business into women's apparel.

  Product launch
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1. Harold's
2. Encyclopedia of Oklahoma History and Culture entry on Harold's