Service Merchandise - #18

I have personal interest in this one as I grew up with my family in the catalog showroom business in Georgia and the Carolinas, founded by my grandfather, Harold Ellman. The business was sold to Service Merchandise during my senior year in high school. (Ellman's)

Service Merchandise's was founded in 1934 as a small five-and-dime store by Harry and Mary Zimmerman in Pulaski, Tennessee. After leaving the wholesale business, they opened Service Merchandise in 1960 in downtown Nashville, Tennessee.  Service Merchandise evolved into a chain of catalog showrooms that, at its peak, achieved more than $4 billion in annual sales.

Despite being early internet adopters and leading the way with e-commerce, the company lost significant market share to bog box retailers, especially electronics and mass merchandisers (Circuit City, Walmart, Bed Bath & Beyond and others)

While in the process of changing its product offerings and store layouts, a group of creditors forced an involuntary petition for bankruptcy under Chapter 11 bankruptcy in March of 1999. 

"The company later filed a voluntary Chapter 11 petition to improve relations with its vendors and creditors in an effort to stabilize its business. Raymond Zimmerman, son of the original founders (who had been instrumental in the process of building the family business into a multibillion-dollar chain) resigned as chairman of the board in November 2000. The company attempted to pull itself out of bankruptcy once again in summer 2001, but the economic downturn following the September 11 attacks proved to be a hurdle the company could not clear. With only 200 catalog showrooms left, the stock valued at less than one cent per share, and no profitability in sight, Service Merchandise ceased operations and shuttered all of its remaining stores by early 2002." (Wikipedia)

For those of you who remember the conveyor belts and catalog ordering forms and the endless aisles of display merchandise, Service Merchandise was a true retail innovator and ahead of it time with many strategic initiatives. They definitely deserve a spot in the retailer hall of fame!