In 1849, Horne's began operations and soon became a leading Pittsburgh department store. In 1879, it opened a seven-story landmark which was the first department store in the city's downtown. In 1972, Associated Dry Goods acquired Horne's, and ADG expanded operations of Horne's to several stores in suburban malls throughout the Pittsburgh region as well as in Erie, Pennsylvania and Northeast Ohio. In December 1986, Horne's was acquired by a local investor group following ADG's acquisition by May Department Stores. By 1994, Federated Department Stores acquired the remaining ten Horne's stores and merged them with its Lazarus division, completely ceasing all operations of any store under the Horne's name.