AARON FRANK FROM THE DEPARTMENT STORE FAMILY

 
Ask insiders about Mr Frank and you will get a host of stories. He was a task master in the store and was against the family selling out to a east coast corporation. There are stories of major fighting within the Frank clan when this came down. But who really knows? Here is a story I found concerning Franks legacy.

Family Dynasty Develops During 20th Century

Aaron Meier's eldest son, Abe, who had been named vice-president of the company following its 1893 incorporation, assumed control over Meier & Frank after the death of Sigmund Frank. His title as president of the thriving retail enterprise was only ceremonial, however. Abe Meier never had a permanent desk in the company's corporate office, and spent much of his time as a "greeter" on the sales floor. The responsibility for running the company fell to his younger brother Julius, who had been appointed vice-president and general manager when Sigmund Frank died. Trained as a lawyer, Julius Meier served as the chief decision-maker for Meier & Frank, and in this capacity, faced the same primary issue his predecessors had to contend with, namely, physical expansion. The ten-story store was deemed inadequate by Julius Meier five years after its grand opening, paving the way for the addition of a new wing in 1915 that gave Meier & Frank a sprawling 11 acres of retail space.

The arrangement of Abe Meier serving as figurehead of Meier & Frank while his brother Julius actually ran the company existed for 22 years. Julius never attempted to usurp his brother's title in a power struggle. He bided his time, waiting for what always had led to a transfer of control within the Meier & Frank business. Historically, the death of the company's top leader had led to the promotion of the vice-president to the presidential post, and for Julius Meier that moment arrived in 1930 when his brother Abe passed away. Julius's tenure at Meier & Frank following his brother's death was brief, however. Late in 1930, Julius was elected to a much higher position than running Oregon's premier department store. He was elected governor of Oregon, winning a close election that, for obvious reasons, kept him from superintending the day-to-day affairs of Meier & Frank. Although Julius retained his title as president of the company during his four-year term as governor, the job of actually running Meier & Frank fell to his second in command and heir apparent, Aaron Frank. Julius Meier's nephew and Sigmund Frank's youngest son, Aaron Frank, had been named vice-president and general manager in 1930. By the time his uncle had been elected governor, Aaron Frank had achieved effective control over the family business. Described by some as smart, dedicated, shrewd, arrogant, and sometimes vindictive, Aaron Frank held the reins of command for the ensuing 38 years.

Three years after his tenure as governor ended Julius Meier died, vacating the presidential post for Aaron Frank. Under Aaron Frank's direction, Meier & Frank maintained its lead over other Portland department stores, while its president exerted resolute control over the company's affairs and considerable influence in Portland's political scene. The landmark achievements under his reign of command were Meier & Frank's first steps outside the Portland area. Aaron Frank initiated branch expansion, opening a store in Salem in 1955 that occupied an entire city block. Next, Frank opened a larger store in the Lloyd Center in Portland in 1960. After these two branch store openings, further expansion was put on hold. There were internal problems at Meier & Frank that took center stage, as a family squabble, brewing for years, erupted into a fight for control over the nearly century-old company.

1966: Family Fight Brings New Owners

Family members had disliked Aaron Frank's style of control for years, characterizing Frank's rule as imperious. In 1964, the dispute came to a head when Jack Meier, the only son of Julius Meier, staged a concerted revolt along with his mother, the children of Aaron Frank's brother Lloyd, and other relatives. At the time, Aaron Frank and his immediate family controlled only 20 percent of Meier & Frank's stock, not enough to ensure his position at the company. Fearful of what would amount to a coup, Aaron Frank sold his family's 200,000 shares in the company to Broadway-Hale Stores, hoping that if Broadway-Hale could gain a controlling interest in Meier & Frank his continued supremacy would be secure. Meanwhile, the faction led by Jack Meier was trying to negotiate for its own supremacy. They had sold the purchase rights to Meier & Frank to The May Department Stores Company, but their majority interest fell short of the two-thirds majority required to complete the tax-free merger with the St. Louis-based department store operator. They also did not have enough of the company's stock to oust Aaron Frank and his son Gerry from the company's board of directors, but they did have the wherewithal to make life miserable for the Franks. They confiscated Aaron Frank's employee's discount card, took his free parking space in the store's garage, and changed the locks on the doors leading to his executive office. As this purposeful program of alienation was taking place, an inconclusive battle to acquire the 20 percent of stock held by the public was waged throughout 1965. The following year, the contentious and frequently petty struggle between the two sides of the family was unexpectedly made moot when Broadway-Hale sold the stock it had acquired from Aaron Frank to May Department Stores. After a century of family ownership, the Meiers and Franks no longer owned their highly successful business.

The turbulent mid-1960s gave way to a decidedly more serene setting at Meier & Frank following the bitter family feud. Aaron Frank died in 1968 and a year later Jack Meier was appointed chairman of the board. Under May Department Stores control, expansion resumed with the establishment of a store in the Eugene area in 1969. During the 1970s, the company completed its most aggressive decade of expansion by opening three new stores. Another Meier & Frank debuted in Portland in 1973, followed by a store opening just outside Portland in Vancouver, Washington, in 1977. A third Portland store opened in 1980, giving the company seven stores and nearly two million square feet of floor space.

In terms of physical growth, the beginning of the 1980s marked the end of aggressive expansion for Meier & Frank. Over the course of the next two decades only one new store was established, a Meier & Frank in Medford, Oregon. Elsewhere within May Department Stores, expansion was robust, as the retail conglomerate developed into a 365-unit operator by the late 1990s. Although May Department Stores did not focus its expansion efforts toward Meier & Frank, Meier & Frank was by no means the forgotten child lost within the May Department Stores empire. Measuring by store units, Meier & Frank was roughly four times smaller than its closest rival within the May Department Stores family, but its average sales per square foot was the third highest, an enviable $225 per square foot during the late 1990s. In 1997, May Department Stores officials announced plans to invest a hefty $3.4 billion in new store openings and renovations, intending to add 100 new stores by 2001. No additional Meier & Frank stores were slated to open during its parent company's investment program, but the Oregon chain's future appeared bright, nevertheless. With more than 130 years of experience, Meier & Frank held sway as a steady and reliable performer, its presence entrenched and ingrained in the hearts of Oregon residents.

Comments

[Brian Ford]

Even though Meier and Frank was on the decline (customer service, product quality) in past years before the take over from Macy's: Macy's has destroyed them. The worst customer service ever! and only a few brands names that are worth purchasing.

[Chuckie Rabinowitz]

I hate meier and franks and i hate macys . They both suck and I hate them so much, they stink.

[Moon walker]

My Aunt worked under Aaron Frank. He was brilliant & tough.