Burlington (department store) explained

Burlington Stores, Inc.
Type:Public
Trade Name:Burlington
Former Name:Burlington Coat Factory (1972–2009)
Founded: (as Burlington Coat Factory)
Founder:Monroe Milstein
Location:Burlington, New Jersey, U.S.
Locations:1,000
Num Locations Year:2021
Industry:Retail
Num Employees:40,000[1]
Num Employees Year:2018
Revenue: (2021)
Operating Income: US$545.30 million (2021)
Profit: US$408.84 million (2021)
Assets: US$7.090 billion (2021)
Equity: US$760.42 million (2021)
Products:Clothing, baby clothing, jewelry, accessories, shoes, furniture, home decor, toys, pet supply, and gifts
Website:burlington.com

Burlington, formerly known as Burlington Coat Factory, is an American national off-price department store retailer, and a division of Burlington Coat Factory Warehouse Corporation with more than 1,000 stores in 40 states and Puerto Rico, with its corporate headquarters located in Burlington Township, New Jersey. In 2007, it was acquired by Bain Capital in a transaction and in 2008, Tom Kingsbury became president and CEO. The company went public again in 2013. Burlington is the third largest off-price retailer after TJX Companies and Ross Stores.

History

Monroe Milstein and his father, Abe, had been running a successful wholesale and retail outerwear business together since 1946.[2] In 1972, Henrietta Milstein convinced her husband Monroe to purchase a former factory outlet in Burlington, New Jersey, for $675,050, using money she had saved from her job as a librarian for most of the $75,000 down payment.[3] [4] Initially, the Milsteins sold coats and jackets in wholesale, but in order to become less dependent on the seasonal coat business, they gradually began adding clothing items and accessories, eventually expanding into linens, gift items, a baby department and shoes.[5] [6]

A second location was opened in 1975 in Copiague on Long Island, and Milstein asked his son Lazer, who was living in Israel at the time, to return home and act as the store's legal owner for the new location. Lazer agreed, on the condition that the store be closed Saturdays in observance of the Sabbath. At the time, businesses faced legal action for being open on Sunday, with an exception made for religions observing a different Sabbath.[7] In 1983, with 31 locations, the company, whose name was Burlington Coat Factory Warehouse Corporation since it was bought by the family in 1972, went public.[8]

In 2006, the company was purchased by Bain Capital Partners for $2.06 billion. The Milstein family held almost 30 million shares of the Burlington Coat Factory Warehouse Corporation, making approximately $1.3 billion, and Monroe Milstein was unassociated with the business following the sale, although two of his sons, Stephen and Andrew, stayed on briefly. Mark Nesci, the former executive vice president and chief operating officer, was named to serve as the acting CEO.[9] A holding company called Burlington Coat Factory Holdings Inc., was formed to be the ultimate parent of the chain.[10]

In July 2012, the company received a $40 million incentive from the New Jersey Economic Development Authority as part of the state's GrowNJ program in order to build a new headquarters in Florence, adjacent to its existing headquarters, keeping the company from moving its headquarters outside the state.[11]

On June 27, 2013, Burlington filed its S-1 registration statement with the SEC for an initial public offering.[12] In October 2013, the company's stock rose more than 40% on its first day of trading.[13] The company reported $4.35 billion in sales for the 12-month period ending August 3, 2013.[14] As of October 2013, the company operated 503 stores in 44 states and Puerto Rico under the names Burlington Coat Factory, Cohoes Fashions, Baby Depot, and MJM Designer Shoes.[15] [16]

In 2016, Burlington Stores joined the Fortune 500 for the first time.[17] Tom Kingsbury served as the CEO from 2008 to 2018.[18]

Following the bankruptcy and closure of all Bed Bath & Beyond stores in the United States, Burlington purchased the leases for more than 40 closed locations in June 2023.[19]

Charitable partnerships

Burlington has partnered with charitable organizations for several years. Since 2002, they have partnered with the joining the Leukemia and Lymphoma Society's Light the Night campaign, collecting donations at the store checkout.[20] [21] With an annual fundraiser that runs from July through October, the company raised more than $3 million in 2013, bringing the total raised by the company to date to more than $19 million.[22]

In 2006, Burlington launched the Warm Coats and Warm Hearts Drive to collect coat donations for those in need. Partnering with ABC's Good Morning America and the national nonprofit Fashion Delivers, Burlington stores served as drop off spots for the donations, which were then distributed within the area by local charities. Since the program's inception, over 1.2 million coats have been collected and distributed.[23] [24]

In 2012, the company first partnered with WomenHeart: The National Coalition for Women with Heart Disease to promote women's heart health education during National Heart Health Month[25] [26] As part of this partnership, the company holds a yearly Red Dress Event, where red dresses are sold in stores, with $1 from every sale donated to WomenHeart.[27] In 2014, as part of the partnership they launched the “Heart of Style Tour”.[28] For the tour, a bus traveled to various store locations, with heart health professionals on board providing blood pressure tests and Body Mass Index (BMI) tests and education about women's heart disease.[29]

Business issues

Under investigation from animal welfare organization Humane Society of the United States, Burlington Coat Factory has been accused of labeling real fur products as "faux fur". The company agreed to pull the false advertisements after an undercover investigation revealed "faux fur" as actually made from the pelts of animals killed in China.[30] Coats sold by stores such as Burlington Coat Factory have also been found to contain hair of raccoon dog.[31] [32] [33]

From 1981 until 2009, Burlington Coat Factory's logo was supplemented with the tag "Not Affiliated with Burlington Industries."[34] [35] When Burlington Coat Factory settled a trademark dispute with fabric maker Burlington Industries in 1981, Burlington Coat Factory agreed to say in advertising that the two companies were not affiliated.[36] Even though Burlington Industries ceased operations in 2004 following a buyout of its remaining operations, the "not affiliated" disclaimer remained on advertising logo and company media until 2009, when the text was retired from all logos used by the company.[37]

An urban legend concerning snakes hiding in coats being sold at Burlington became widely circulated in the early 1990s.[38] A representative from the company assured customers that since distribution centers and stores were maintained at 68 °F, a snake would not be able to survive retail conditions.[39]

In the September 11, 2001, attacks, after hijacked United Airlines Flight 175 penetrated through the South Tower of The World Trade Center, part of the plane's landing gear and fuselage came out the north side of the tower and crashed through the roof and two of the floors of the Burlington Coat Factory at 45–47 Park Place, between West Broadway and Church Street, (600feet) north of the former World Trade Center. The store had been the company's first location in Manhattan, opened in 1991.[40] Three floor beams of the top floor of the building were destroyed, causing major structural damage.[41] [42] [43] Nearly nine years later, the building was part of a national controversy, as efforts to build a Muslim center and mosque at the site as the "Cordoba House" sparked protest and was widely rejected.[44] [45] [46] [47] [48]

See also

Notes and References

  1. Web site: Burlington Stores. Fortune. 2018-12-31. 2019-05-14. https://web.archive.org/web/20190514232516/http://fortune.com/fortune500/burlington-stores/. dead.
  2. Web site: Burlington Coat Factory Offers Range Of Rugs. - Free Online Library . Thefreelibrary.com . 1998-09-14 . 2014-02-20.
  3. Web site: Bloomberg News . Bain Capital Purchases Burlington, a Retailer . . 2006-01-19 . 2014-02-20.
  4. Web site: Strauss . Robert . $2 Billion Later - NYTimes.com . . 2006-02-05 . 2014-02-20.
  5. Web site: Apparel Stores Analysis: Monroe Milstein - Burlington Coat Factory Warehouse Corporation (bcf) | Round Table | SHX:TSE . 5 March 2001 . Twst.com . 2014-02-20.
  6. Web site: Burlington Stores, Inc. | Company profile from Hoover's | 609-387-7800 . https://archive.today/20140314195704/http://webadept.hoovers.com/company/Burlington_Stores_Inc/rftcsi-1-1njhxk.html . dead . 2014-03-14 . Webadept.hoovers.com . 2010-10-21 . 2014-02-21 .
  7. News: Twists, quirks and coats Success was based on family, luck - and a crucial rule.. The Philadelphia Inquirer. 2011-08-30 . 2014-02-20. https://web.archive.org/web/20140512221710/http://articles.philly.com/2006-01-22/business/25410525_1_coat-factory-warehouse-corp-monroe-milstein-milstein-family. May 12, 2014.
  8. Web site: Burlington Coat Factory Corporate Office. Corporate Offices & Headquarters. 4 July 2013 . 2014-02-20.
  9. News: Milsteins' biggest deal Burlington Coat sold for $2.06 billion.. Philadelphia Inquirer . 2006-01-19 . 2014-02-20. https://web.archive.org/web/20140513012625/http://articles.philly.com/2006-01-19/business/25411662_1_burlington-coat-factory-warehouse-strong-management-team-monroe-milstein. May 13, 2014.
  10. Web site: Anne D'Innocenzio . Burlington Stores shares climb in market debut . The Reporter . 2014-02-20 . https://web.archive.org/web/20140513012005/http://www.thereporter.com/business/ci_24229143/burlington-stores-shares-climb-market-debut . 2014-05-13 . dead .
  11. Web site: Michael Mancuso . Burlington Coat Factory receives $40M from GrowNJ program to keep headquarters in New Jersey . NJ.com . 2012-07-12 . 2014-02-20.
  12. Web site: Burlington Holdings, Inc. (Form: S-1, Received: 06/27/2013 14:04:05) . Nasdaq.com . 2014-02-20.
  13. Web site: Pfeifer . Stuart . Burlington Coat Factory IPO a big hit with investors . . 2013-10-02 . 2014-02-20 . 2014-01-15 . https://web.archive.org/web/20140115215958/http://www.latimes.com/business/money/la-fi-mo-burlington-coat-factory-ipo-20131002,0,215001.story#axzz2tlzb5Svh . dead .
  14. Web site: Bain Capital-backed Burlington Stores sets terms for $200 million IPO . NASDAQ.com . 2014-02-20.
  15. Web site: Burlington Expects $250 Million from IPO - MRketplace / MR Magazine . Mrketplace.com . 2013-10-03 . 2014-02-20 . dead . https://archive.today/20140314195624/http://www.mrketplace.com/57214/burlington-expects-250-million-from-ipo/ . 2014-03-14 .
  16. Web site: Avik Das . Burlington Stores returns to market, shares jump 50 pct. Chicago Tribune. 2013-10-02 . 2014-02-20. https://web.archive.org/web/20140513011524/http://articles.chicagotribune.com/2013-10-02/news/sns-rt-us-burlingtonstoresinc-ipo-20131002_1_mjm-designer-burlington-coat-factory-bain-capital. May 13, 2014.
  17. Web site: Here Are The 15 New Companies Joining The Fortune 500. fortune.com . 2016-06-06 . 2016-06-07.
  18. Web site: Exhibit99-1.HTM .
  19. Web site: These retailers will take over Bed Bath & Beyond's 'top-notch' store leases. cnbc.com . 2023-06-29 . 2023-07-19.
  20. Web site: Burlington to raise funds for blood cancer research . Retailing Today . 2013-07-08 . 2014-02-20.
  21. Web site: Style Files: Fashions that benefit Light the Night . WGN-TV . 2013-09-04 . 2014-02-20.
  22. Bonander . Ross . Burlington Coat Factory Raises $3 million for the LLS . Lymphomainfo.net . 2012-12-07 . 2014-02-20.
  23. Web site: Warm Coats & Warm Hearts Drive - ABC News . Abcnews.go.com . 2014-02-20.
  24. Web site: Fashion Delivers . K.I.D.S./Fashion Delivers . 2014-02-20 . https://web.archive.org/web/20140519075044/http://www.donateproduct.com/our-impact/ . 2014-05-19 . dead .
  25. Web site: About Us - WomenHeart: The National Coalition for Women with Heart Disease . WomenHeart . 2014-02-20.
  26. Web site: Heart of Style Tour . Modern Day Moms . 2014-02-20.
  27. News: Burlington Coat Factory launches red dress event . SunThisweek . 14 February 2013. 10 April 2014.
  28. Web site: Community Calendar: Feb. 3 - March 29 . Njtoday.net . 2014-01-30 . 2014-02-20 . 2014-04-07 . https://web.archive.org/web/20140407012056/http://njtoday.net/2014/01/30/community-calendar-feb-3-march-29/ . dead .
  29. News: 'Heart Of Style' Heart Disease Education Bus Set To Roll Into Philadelphia. CBS Philly. 2014-01-30 . 2014-02-20.
  30. News: Burlington pulls faux coat ads. Corpus Christi Caller Times. 2006-12-13 . 2014-02-20. https://web.archive.org/web/20140513010628/http://www.caller.com/news/2006/dec/13/burlington-pulls-faux-coat-ads/?print=1. 13 May 2014.
  31. News: Fur-Raising Reality Dog And Cat Pelts Fetch A Profit . Pqasb.pqarchiver.com . January 2, 2001 . May 30, 2009 . Rose . Boccio. https://web.archive.org/web/20110604034805/https://pqasb.pqarchiver.com/chicagotribune/access/65899976.html?dids=65899976:65899976&FMT=ABS&FMTS=ABS:FT&date=Jan+02%2C+2001&author=Rose+Boccio+Special+to+the+Tribune&pub=Chicago+Tribune&desc=FUR-RAISING+REALITY+DOG+AND+CAT+PELTS+FETCH+A+PROFIT&pqatl=google. June 4, 2011.
  32. News: Md. Bill Seeks to End Mislabeling of Fur Coats . Washington Post. February 5, 2008 . May 30, 2009.
  33. News: Secret Search Led to Discovery of Dog Fur in U.S. Clothing; Investigation: Humane Society estimates at least 2 million domesticated animals abroad are killed annually to make garments, toys and other products. Los Angeles Times. Washington Post. December 18, 1998 . May 30, 2009 . Brian . Mooar. live. https://web.archive.org/web/20110204220315/http://articles.latimes.com/1998/dec/18/news/cl-55094. February 4, 2011.
  34. Web site: Burlington Coat Factory Ad . Pittsburgh Post-Gazette . 1997-01-15 . 2014-02-20.
  35. Web site: Madison Capital Times, Thursday, April 10, 2003, Page 82 . 10 April 2003 . Newspaperarchive.com . 2014-02-20.
  36. Web site: 1990 Burlington Coat Factory Commercial . YouTube . 1990-12-06 . 2014-02-20.
  37. Web site: Burlington Holdings, Inc. (Burlington Coat Factory) . Retail Career Hub . 2013-06-27 . 2014-02-20 . https://web.archive.org/web/20140512232210/http://www.retailcareerhub.com/retailers/entry/burlington-holdings-inc.-burlington-coat-factory . 2014-05-12 . dead .
  38. Web site: Snake in Coat Pocket. 2010-01-11. Snopes.com. 2018-02-19. en-US.
  39. "Season 1, Episode 1." Mostly True Stories: Urban Legends Revealed, written by Thomas Quinn, directed by Thomas Quinn, Burrud Productions, 2002.
  40. https://web.archive.org/web/20140619121127/http://www.highbeam.com/doc/1G1-8949646.html "Burlington Coat coming to Manhattan". Daily News Record October 5, 1990, Marsh, Lisa, via archived HighBeam Research link
  41. Book: World Trade Center emergency damage .... January 3, 2008 . August 4, 2010.
  42. Book: World Trade Center building ... . 2002 . 9780160673894 . August 8, 2010 . McAllister . Therese . Federal Emergency Management Agency, Federal Insurance and Mitigation Administration .
  43. Web site: Twin Towers: Qualitative Analysis of Collapse Behavior . G. Oliveto & A. Marinetti. August 8, 2010. https://archive.today/20120709084635/http://scholar.googleusercontent.com/scholar?q=cache:diw8BqkveQkJ:scholar.google.com/+%2245+park+place%22+landing+gear&hl=en&as_sdt=20000000000. 9 July 2012. Also the landing gear was found at 45 Park Place.... Google Scholar.
  44. News: Vote Endorses Muslim Center Near Ground Zero . Javier C. . Hernandez . The New York Times . May 25, 2010 . August 1, 2010.
  45. News: CB1 Committee Hails Plans for a Mosque Two Blocks from WTC Site . Matt . Dunning . The Tribeca Trib . May 6, 2010 . August 3, 2010 . dead . https://web.archive.org/web/20100528024505/http://www.tribecatrib.com/news/2010/may/603_cb1-committee-hails-plans-for-a-mosque-two-blocks-from-world-trade-center-site.html . May 28, 2010.
  46. Web site: Ground Zero Mosque Plan Moves Forward; "Shame On You" Shouted at Panel. Luke . Funk . Fox News . January 19, 2010 . August 4, 2010.
  47. News: Planned Sign of Tolerance Bringing Division Instead . Javier C. . Hernandez . The New York Times . July 13, 2010 . August 1, 2010.
  48. Book: World Trade Center emergency damage assessment of buildings: Structural Engineers Association of New York inspections of September and October 2001. Structural Engineers Association of New York. Noah Klersfeld. Guy Nordenson and Associates. LZA Technology. 1 . Structural Engineers Association of New York. 2003 . August 3, 2010.

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