Cloud's largest employer with 4, local workers in seasonal and year-round positions. In , Federated Department Stores Inc. Cloud workers as it shut down operations. Former chief executive Ted Deikel and St. Cloud native Tom Petters bought Fingerhut assets from Federated, formed new companies and restarted catalog distribution in late Facebook Twitter Email.
In a management shakeup, newly installed president Ted Deikel, son-in-law of Manny Fingerhut, took charge of domestic operations and focused on a number of key areas, including cost-cutting, boosting company morale, and rethinking product mailings. Two of the most important steps Deikel took were phasing the company out of manufacturing and calling for pinpoint marketing, in which customers would be segmented by their buying preferences.
By the s Fingerhut's database and corresponding mailings had become so advanced that virtually every customer represented a specialized market, thus earning the company the title of perhaps 'the ultimate niche company' from In Search of Excellence author Thomas J. Another positive outcome of the recession was Fingerhut's development of a multistep contingency plan to deal with future recessions.
The plan involved tracking declines in orders from 'solo' product mailings and rises in preshipment cancellations if certain percentages were reached, a recession was at hand ; responding to such key declines and rises by raising credit standards, reducing sales to marginal customers, and increasing sales to core customers; and changing its product mix. By the last months of , a new recession was in sight and Fingerhut was able to implement its plan.
The company's ability to reap a profit increase of ten percent in the second quarter of , while other retailers and mail-order houses suffered profit declines ranging from 18 percent to 43 percent during the same period, immediately placed Fingerhut in the limelight. In a November article for Fortune, Herbert Meyer reported: 'As word of Fingerhut's triumph has spread, Deikel and his colleagues have begun to receive inquiries from executives throughout U.
Understandably, the Fingerhut crew is rather enjoying the attention. Ironically, it was Deikel's retailing genius that caused nonretailing conglomerate American Can Company later renamed Primerica to acquire Fingerhut in After the purchase, Deikel assumed the additional responsibility of overseeing other American Can properties, including music merchandiser Pickwick International then owner of Minnesota retail powerhouse Musicland. By , however, Deikel was ready to build his own marketing organization from scratch and he left Fingerhut and Primerica.
Despite difficulties related to Primerica's later plans to divest Fingerhut, the cataloger managed to flourish through much of the s. As of the company ranked alongside Spiegel, Inc. Meanwhile, Deikel had founded Plymouth, Minnesota-based CVN Companies, an enormously successful pioneer of the cable home shopping industry. A singularly golden opportunity presented itself virtually next door, at Deikel's former employer, Fingerhut.
Since at least , according to Lee Schafer, Deikel had been discussing the possibility of acquiring Fingerhut with his fellow managers. By that time American Can--now renamed Primerica--was beginning to redefine itself as a diversified financial services company and simultaneously considering selling off some of its interests, including Fingerhut. The situation intensified from late into , when Deikel was in direct contact with his friend Gerald Tsai, Jr. Schafer postulated that 'Tsai's determination of Fingerhut's price was based less on an analysis of its value than on Primerica's own pressing financial need.
Weill's purchase of Primerica. Fingerhut was once again for sale and, as its revenues stalled in and , it became more and more of a bargain for the right investor under the right circumstances.
This paved the way for a deal between Deikel and Weill in which a Deikel-led management group would be installed before the end of , and 28 percent of the Primerica subsidiary was spun off to the public the following year. Following Primerica's offering--part of a full divestiture plan that was completed in January Sears departed the catalog industry and Fingerhut showed especially strong growth in both sales and net income. Capmark Financial Group Inc. Capmark changed its name to Bluestem Group Inc.
All rights reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals. Menu Bizwomen. Latest News. Fingerhut Gallery of Sausalito, Inc. This corporate entity was filed approximately twenty-six years ago on Friday, August 4, as recorded in documents filed with California Secretary of State. Fingerhut Headquarters Info. The corporate offices for Fingerhut headquarters are located in Eden Prairie, Minnesota.
Bluestem Brands, however, claims the offices are located in St. Cloud, Minnesota. Since then we have helped millions of people buy everything from furniture and bedding to jewelry to the latest electronics, all with affordable low monthly payments. Popular Searches.
0コメント