Ames

Ames was an American chain of discount stores based in Rocky Hill, Connecticut.
The company was established in 1958 with a store in Southbridge, Massachusetts. At its zenith, it had 700 stores spread across 20 states, including the Northeast, Upper South, Midwest, and the District of Columbia. This made it the fourth-largest discount retailer in the United States.
Despite experiencing some success in its later years, Ames was burdened by debt and faced a gradual decline in sales. As a consequence, the company had to file for bankruptcy twice, which ultimately led to the downfall of the chain. Although Ames had expanded into other markets and taken over many closed stores that had been abandoned by competitors, it was forced to go out of business in 2002.
==History==
Ames had its humble beginnings in 1958 when two brothers from Connecticut, Milton and Irving Gilman, launched their first store in the Ames Worsted Textile Co. mill located in Southbridge. To create the new business, the Gilmans utilized the old sign of the textile mill.
Ames' original business strategy was to introduce discounting to the smaller towns and rural areas of the Northeast, which was a novel concept at the time.
The company's success in catering to a predominantly rural customer base in smaller and less competitive markets led to a consistently robust financial performance and a steady growth trajectory. Through the late 1980s, Ames achieved this growth through a combination of strategic acquisitions and an aggressive store-building program.
To establish its foothold in the market, Ames repurposed several industrial sites for its first stores, such as the inaugural store located in a former textile mill. The company leveraged the availability of inexpensive real estate in this manner during its initial decades. However, as the company grew, it transitioned to custom-built store facilities that offered standardized planning and marketing.
During the 1980s, numerous Ames stores served as the department store "anchor store" for several discount mall developments.
==Expansion and Initial Bankruptcy: A Wave of Ups and Downs==
In November 1978, Ames acquired the 32-store "Big N" chain from Neisner Brothers. Six years later, in 1984, the company purchased the King's Department Stores chain and incorporated most of its 193 stores into its own operations.
In 1985, Ames acquired G.C. Murphy of McKeesport, Pennsylvania, which was a chain of stores that operated both discount stores and variety stores. However, Ames later sold off many of the smaller G.C. Murphy discount stores and variety stores to McCrory Stores in 1989.
Three years after acquiring G.C. Murphy, Ames continued its expansion by acquiring the 392-store Zayre chain in 1988.
Due to the added debt and the cost of converting the newly acquired stores to Ames stores, the company faced a substantial decline in profitability in late 1989 and early 1990.
The Zayre chain had a significant concentration of stores in two distinct regions - the Northeast and Florida, which created challenges for coordination and management.
In April 1990, Ames filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code due to its financial struggles.
Ames' policy of extending consumer credit to almost anyone who asked, without first checking their credit rating, seemed to be one of the leading causes of the bankruptcy. This move was part of an attempt to increase Ames' market share, but it ultimately backfired. Additionally, replacing the Zayre credit card program with Visa credit cards that could be used anywhere that Visa was accepted likely added to the financial burden that the company faced.
As a result of Ames' policy of extending credit to customers without verifying their credit rating, the company often gave credit cards to customers who were already in debt. This practice attracted high-risk borrowers who were more likely to default on their debt payments, which likely contributed to the bankruptcy filing. During the bankruptcy proceedings, Ames was forced to close 370 stores.
During the bankruptcy period, Ames underwent a rebranding effort, including a change in their logo. The traditional red and white color scheme was replaced with the green color that was used in Zayre stores, which became a distinguishing characteristic of most Ames stores.
==Emerging from Bankruptcy and the Acquisition of Hills: A New Chapter for Ames==
After undergoing a significant restructuring process, including closing unprofitable stores and cutting costs, Ames was able to successfully emerge from bankruptcy on December 30, 1992. This marked a turning point for the company as it returned to profitability in 1993 and saw significant improvement in its operating performance. This success was due in part to the company's renewed focus on improving its merchandise selection and pricing strategy, as well as its renewed commitment to providing excellent customer service.
The company's financial performance continued to improve following its emergence from bankruptcy. By fiscal year ended January 25, 1997, Ames had reported a net income of $17.3 million (equivalent to $26.4 million in 2017), a significant improvement compared to the previous year's net loss of $1.6 million (equivalent to $2.51 million in 2017).
In fiscal year ended January 25, 1997, Ames achieved a net income of $17.3 million, which is equivalent to $26.4 million in 2017. This marked a significant improvement compared to the previous year, which saw a net loss of $1.6 million, equivalent to $2.51 million in 2017. Moreover, the income before other charges and gains for fiscal year 1996 was $33.3 million, equivalent to $50.9 million in 2017, which is a $26.4 million improvement compared to the prior fiscal year's $6.9 million, equivalent to $10.8 million in 2017. This improvement in the company's financial performance was a testament to its successful emergence from bankruptcy and its focus on operational efficiency.
During the 1990s, Ames gained a reputation for filling the void left by their competitors by taking over many of their former locations. This strategy allowed Ames to expand their presence in various regions, often with existing customer bases already in place. Additionally, these locations were typically already outfitted with the necessary infrastructure, reducing the cost and time required to open new stores. By the end of the decade, Ames had become the largest discount retailer in the Northeastern United States.
In the 1990s, Ames expanded by acquiring several former locations of their competitors. They added several closed Bradlees stores early in the decade, and in 1996, they opened 12 new stores, 11 of which were former Jamesway stores after that chain went out of business in late 1995.
The Ames chain continued to expand in the late 1990s, taking over several locations previously occupied by its competitors. For instance, after Caldor's liquidation in 1999, Ames acquired several of their store locations. Additionally, when Montgomery Ward closed later that same year, Ames also took over a few of their stores.
After the acquisition of Hills Department Stores in 1998, Ames became the fourth-largest discount retail chain in the United States, following Walmart, Kmart, and Target. This strategic move allowed Ames to expand its presence in the Midwest and Southern regions, adding 155 stores to their portfolio. The acquisition also brought in new management and merchandising strategies, contributing to the overall growth and success of the company.
Although Hills Department Stores was based in suburban Boston, its retail locations were primarily concentrated in Indiana, Kentucky, Ohio, Pennsylvania, and western New York, which served as a regional complement to Ames' stores in the northeast.
After the acquisition of Hills Department Stores, Ames had expanded to just over 600 locations, with a majority of stores located in the Northeast and Midwest regions. The company employed approximately 22,000 people.
==Ames' Successful Expansion into the Chicago Market==
In 1988, Ames expanded its retail footprint into the Chicago area through the acquisition of Zayre. Then, in 2000, it further established its presence in the region by acquiring all but one of the seven Goldblatt's department stores, cementing its position as a major player in the Chicagoland retail market.
Ames also acquired former Venture and Builders Square stores, bringing the total number of locations to 11. The company aimed to appeal to low-income and ethnically diverse consumers, implementing proven successful strategies.
According to Ladenburg Thalmann analyst Beder, the stores are primarily located in the low-income areas of the South Side of Chicago.
Before the opening day, Ames launched a television marketing campaign featuring its employees cheerfully working while singing "My Kind of Town," a song closely associated with Chicago. The company also put up billboards that read, "Our Kind of Town, Your Kind of Discount Store," emphasizing its commitment to serving the local community.
In September 2000, Ames opened eight of its Chicago stores and shortly thereafter opened the remaining locations. A few months later, Ames expanded its presence in Chicago by opening additional stores.
==Restructuring and Closure: Ames' Second Bankruptcy (1999-2002)==
In March 1999, Ames closed eight stores as part of a cost-cutting measure.
In November 2000, Ames closed 32 stores, of which 31 were the recently acquired Hills stores. These closings had been expected as they were considered the weakest of the Hills chain.
In August 2001, Ames closed an additional 47 stores and ultimately filed for bankruptcy protection for the second time on August 20 of that year.
In November 2001, Ames closed down 16 more stores along with a distribution center, followed by another 54 stores in December of the same year. By June 2002, six more stores were closed, leaving the chain with only 327 stores, which was roughly half of what they had in 1998.
Ames' executives announced on August 14, 2002, that they would close all 327 remaining stores in the chain and begin the process of winding down the business. This decision effectively ended the company's efforts to reorganize under Chapter 11 bankruptcy protection and forced a conversion to Chapter 7 bankruptcy liquidation.
Ames' chairman and CEO Joseph R. Ettore, who had previously overseen the bankruptcy and liquidation of Stuart's and Jamesway, announced on August 14, 2002, that the remaining 327 stores in the chain would be closed, and the business would be wound down. The decision was made due to "continued softness in sales, combined with tightening terms and slower shipments from our suppliers, [which] have reduced our funds availability below critical levels," according to Ettore.
According to analysts, the bankruptcy of Ames was likely caused by a combination of factors, including the company's high debt load resulting from the acquisition of Hills Department Stores, as well as the tightened credit markets of 2001.
The expansion of Walmart into the Northeast, combined with Target's plans to expand into the Pittsburgh area just as Ames was facing financial difficulties, contributed to the inevitable fate of Ames.
== Rumored Return ==
In December 2022, Molyneux Group, who owns the assets of Bradlees Department Stores PLC, announced that Ames Department Stores would be returning after 21 years and will be opening locations in Connecticut once again starting in the Spring of 2023.  The company posted a new website announcing as such on amesstores.com, the domain which the chain used from 1996 until its bankruptcy in 2002. The same month, reporters from WJAR and WVIT investigated the claims of the store's revival, with both reporters noting that they were unable to make contact with anyone involved with Molyneux Group. The project is allegedly led by Molyneux Group's American division, Silver Knight Group. The website only featured the store's logo and text telling readers that the brand would be returning in spring 2023 and to pay attention to the website for announcements on the first new locations but not everyone is convinced, going so far as to suggest that the whole thing is a "hoax."
In September 2023, the site was updated, removing all references to new stores opening or the Spring 2023 timeline, the site simply displayed a statement from the "Board of Directors" referencing a shakeup of the board due to mismanagement and other references to stakeholders and the Ames community, without giving any real information about the company.
On March 2024, Ames announced plans to open new brick-and-mortar stores starting in June 2026, with plans of 35 locations by late 2027. All 35 locations will have an Ames Cafe and click & collect services, with select locations having a pharmacy as well. Seven distribution centers are also planned to handle deliveries.
==Store Slogans==
* "The savings are amazing at Ames" (mid 1970s)
* "The savings are amazing at Ames / Big N" (late 1970s)
* "You can believe in Ames" (early 1980s)
* "Amazing Ames!" (early 1980s)
* "It Pays to Shop at Ames... Every day." (late 1980s)
* "Where you come first... Every day." (late 1980s/early 1990s)
* "Ames. We grew up with better values." (early 1990s)
* "On your side." (mid 1990s)
* "Bargains by the Bagful." (1995-2002)
==See also==
*Walmart - competitor
*Target - competitor
*Sears - Former competitor
*Kmart - Former competitor
*Jamesway - Former competitor
*Bradlees - Former competitor
Category:Defunct retailers
Category:Discount stores
Category:Defunct department stores
Category:Defunct Mall Retailers
Category:Retailers that filed for bankruptcy
Category:Department stores
Category:Retailers
Category:Defunct
Category:Hardware Stores
Category:2001
Category:Companies
Category:Franchises
Category:Brands
Category:Companies founded in the United States