one of the Wall Street Journal's best reporters gives readers a fly-on-the-wall account that details one of the more vicious high-stakes power struggle in the history of Seventh Avenue and Wall Street. Set against a backdrop of avarice, egotism, and boardroom battles, The Rain on Macy's Parade is the inside story of how Macy's executives launched the largest leveraged buyout in retail history and brought the company to its knees.
--This text refers to an alternate
Hardcover
edition.
Book Description
Editorial Reviews
Amazon.com Review
As evidenced by its idyllic portrayal in Miracle on 34th Street, Macy's always represented more than a mere department store. Millions enjoyed roaming its aisles each year, and thousands--including lawyer William Kunstler and actor Burgess Meredith--considered themselves lucky to work there. But it wasn't immune from the corporate upheaval that marked the 1980s, and Jeffrey Trachtenberg's The Rain on Macy's Parade: How Greed, Ambition, and Folly Ruined America's Greatest Store describes its downfall with style and insight.
--This text refers to an alternate
Hardcover
edition.
From Publishers Weekly
The real miracle on 34th street, shows Wall Street Journal reporter Trachtenberg, is that Macy's even still exists. The flagship Herald Square store opened in 1902; by 1986, when chairman Edward Finkelstein took this publicly traded Manhattan institution private, Macy's operated 95 stores in 14 states. Before the insiders' buyout, the business had $144 million in debt and $l.48 billion in shareholder equity, i.e., $1 of debt for every $11 in equity; after the takeover, the ratio was $3.15 billion in debt and $290 million in equity, or $10 in debt for each dollar of equity. Following the takeover, disastrous decisions compounded, as Finkelstein relied increasingly on Macy's private-label merchandise; unsuccessfully attempted to buy his competitor Federated Department Stores but settled for two of its California divisions; and appointed two of his sons to high-level positions for which, Trachtenberg suggests, they were unqualified. By 1992 Macy's annual interest expenses alone amounted to $500 million. How this near-collapse came about is the remarkable and ultimately distressing story Trachtenberg relates so stylishly here. Virtually all the participants, except for Finkelstein, agreed to be interviewed, giving the book an insider's intimacy. The tangled finances and the vast cast of lenders and predators would be hard to keep straight if not for Trachtenberg's enormous skill. Before this story is done, he has also given readers an education in today's department store merchandising, which is now controlled by a few conglomerates, among them Federated Department Stores?which, ironically, acquired the Macy's empire in 1992 after Macy's filed for Chapter 11 bankruptcy protection. Trachtenberg's sensitive handling of this venal tale turns it into a morality play of dimension. Photos not seen by PW.
Copyright 1996 Reed Business Information, Inc. --This text refers to an alternate Hardcover edition.
Copyright 1996 Reed Business Information, Inc. --This text refers to an alternate Hardcover edition.
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3 of 4 people found the following review helpful:
5.0 out of 5 stars
Ego Runs Amuck!,
By Jeffrey M Seidel, Executive Editor, Financial... (South Lake Tahoe, CA USA) - See all my reviews
This review is from: The Rain on Macy's Parade (Hardcover)
This book is a perfect example of what investors should read, to avoid the next Enron, or for that example, Macy's.Macy's is the unfortunate story of how one man's ego and belief that he can do no wrong, brought on the colapse of one of the 20th centuries great merchant companies. If you are an investor, it is important to read this book, to gain an understanding of what to look out for in the world of investing.
1 of 13 people found the following review helpful:
5.0 out of 5 stars
Corporate Failure and strategies for recovery,
By Renato B. Nieto (Plaridel, Bulacan, Philippines) - See all my reviews
This review is from: The Rain on Macy's Parade (Hardcover)
Hi! I am Renato Nieto, an MBA student of De La Salle University in Manila. Actually I have not seen the book yet. The reason I tried to sneak to your site is to let you know that I am in dire need to purchase/read the subject book for our MBA case study. I learned that there is no stock available, but if you would be kind enough to help me, please send me by e-mail an equivalent layout of the book in e-mail form so i can start reading it right away. This may sound silly and may cost you time and extra effort but let me know how much will it cost me if you can do that. Thanks very much, Rene
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