Dylex
Encyclopedia
Dylex Limited was one of Canada
's largest retailers, involved in the operation of specialty retail stores, such as women's wear, menswear, and family stores. It was formed in 1966 as a holding company for the purchase of Tip Top Tailors through a partnership between Jimmy Kay, a Toronto-based entrepreneur with business interests in housewares, plastics, and lighting, and the Posluns family, who for three generations had been involved in the Toronto garment industry. From the start the company was diversified, maintaining retail and manufacturing operations. The company recorded explosive growth during the 1970s and 1980s operating 17 chains with more than 2,700 stores in the United States and Canada at its peak.
In its final years, the company had five business divisions: BiWay (discount basic apparel and general merchandise), Thriftys
(denim
and other jeanswear and accessories), Tip Top Tailors
(mid-priced men's suits and sportwear), and its women's wear group, made up of Fairweather (women's career and casual clothing) Big Steel Man (aka Big Steel and in its final days Steel) and Braemar (women's tailored clothing and accessories). The company operated 638 stores across Canada.
In 1999, Dylex created a new chain offering off-price brand name clothing and accessories named Labels, in an attempt to have a chain competing with the current leader of that category, Winners
. This new venture was not successful, and by the end of 2000, the chain was purchased by the TJX Companies
Inc (operators of the TJ Maxx and TK Maxx stores in the United States
and Europe
), and then folded into their Winners/HomeSense
chain.
BiWay Stores accounted for 54% of fiscal 2000 revenues; Thriftys, 14%; Fairweather, 12%; Tip Top Tailors, 12%; Braemar, 7%; and Labels, 1%.
In 2000, the company sold its Thriftys, Braemar & National Logistics divisions to American Eagle Outfitters
.
The remainder of the group was purchased in 2001. The BiWay stores chain was acquired by Hardof Wolf Group, a shell company
for the United States
-based McCrory Stores
, a dollar store
chain owned by sleazy corporate raider Meshulam Riklis. The Fairweather chain was purchased by a private Canadian investment consortium. McCrory had announced its intentions to convert all of the BiWay stores into a dollar store chain to be named Dollar Zone, named after their chain of dollar stores in the United States. These plans did not go through however, and in August 2001, all BiWay stores, save for a fe Toronto area locations, were shuttered for good and Hardof Wolf left with all of the employees' money. The courts finally forced Hardof Wolf to pay back some of the money it stole from the employees. This court case set precedent in Ontario bankruptcy case law. An article entitled , $32 million out-of-court settlement for Dylex creditors may further aid in explaining this case. A Forbes article dated October 8, 2001 'Riklis Driving' gives some details about how Riklis drained money from Dylex into other Riklis owned companies.
Recently, however, a few formerly "abandoned" BiWay stores have been converted to other uses, such as Giant Tiger
, The Bargain! Shop
, and Dollarama
.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
's largest retailers, involved in the operation of specialty retail stores, such as women's wear, menswear, and family stores. It was formed in 1966 as a holding company for the purchase of Tip Top Tailors through a partnership between Jimmy Kay, a Toronto-based entrepreneur with business interests in housewares, plastics, and lighting, and the Posluns family, who for three generations had been involved in the Toronto garment industry. From the start the company was diversified, maintaining retail and manufacturing operations. The company recorded explosive growth during the 1970s and 1980s operating 17 chains with more than 2,700 stores in the United States and Canada at its peak.
Overview
The name is derived from an acronym created by the new partnership. When the new investors took over Tip Top Tailors they were met with explanations and finger-pointing as to why the company was in such poor shape. DYLEX stands for Damn Your Lousy EXcuses which was a sign that things were about to change in the management of the company.In its final years, the company had five business divisions: BiWay (discount basic apparel and general merchandise), Thriftys
Bluenotes
Bluenotes is a Canadian lifestyle clothing brand and was established in 1984. The concept is designed to attract consumers aged 14–24 through its "If Jeans Could Talk" inspired image and casual wear. It has since developed into one of Canada's leading denim retailers...
(denim
Denim
Denim is a rugged cotton twill textile, in which the weft passes under two or more warp threads. This produces the familiar diagonal ribbing identifiable on the reverse of the fabric, which distinguishes denim from cotton duck. Denim has been in American usage since the late 18th century...
and other jeanswear and accessories), Tip Top Tailors
Tip Top Tailors
Tip Top Tailors is a Canadian retail clothing chain, selling primarily menswear: suits, tuxedo rentals, casual wear, sportswear and outerwear; as well, each store has an in-house tailor...
(mid-priced men's suits and sportwear), and its women's wear group, made up of Fairweather (women's career and casual clothing) Big Steel Man (aka Big Steel and in its final days Steel) and Braemar (women's tailored clothing and accessories). The company operated 638 stores across Canada.
In 1999, Dylex created a new chain offering off-price brand name clothing and accessories named Labels, in an attempt to have a chain competing with the current leader of that category, Winners
Winners (store)
Winners is a chain of off-price Canadian department stores owned by TJX Companies which also owns HomeSense. It offers brand name clothing, footwear, bedding, furniture, fine jewellery, beauty products, and housewares. According to an example in the Winners FAQ, an item selling there for $29.99 was...
. This new venture was not successful, and by the end of 2000, the chain was purchased by the TJX Companies
TJX Companies
The TJX Companies, Incorporated , is the largest international apparel and home fashions off-price department store chain in the United States. Based in Framingham, Massachusetts, the company originally evolved from the Zayre discount department store chain, founded in 1956, which opened its first...
Inc (operators of the TJ Maxx and TK Maxx stores in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
), and then folded into their Winners/HomeSense
HomeSense
HomeSense is a chain of off price home furnishing stores operated by TJX Companies with stores in Canada and the United Kingdom.-HomeSense in Canada:At year-end 2010, HomeSense operated 82 stores in Canada...
chain.
BiWay Stores accounted for 54% of fiscal 2000 revenues; Thriftys, 14%; Fairweather, 12%; Tip Top Tailors, 12%; Braemar, 7%; and Labels, 1%.
In 2000, the company sold its Thriftys, Braemar & National Logistics divisions to American Eagle Outfitters
American Eagle Outfitters
American Eagle Outfitters is an American clothing and accessories retailer based in Pittsburgh, Pennsylvania. It was founded in 1977 by Mark and Jerry Silverman as a subsidiary of Retail Ventures, Inc., a company which also owned and operated Silverman's Menswear...
.
The remainder of the group was purchased in 2001. The BiWay stores chain was acquired by Hardof Wolf Group, a shell company
Shell (corporation)
A shell corporation is a company which serves as a vehicle for business transactions without itself having any significant assets or operations. Shell corporations are not in themselves illegal and have legitimate business purposes. However, they are a main component of the underground economy,...
for the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
-based McCrory Stores
McCrory Stores
J.G. McCrory's or McCrory Stores was a chain of five and dime stores in the United States based in York, Pennsylvania. The stores typically sold shoes, clothing, housewares, fabrics, penny candy, toys, cosmetics, and often included a lunch counter or snack bar...
, a dollar store
Dollar store
A variety store or price-point retailer is a retail store that sells inexpensive items, often with a single price for all items in the store...
chain owned by sleazy corporate raider Meshulam Riklis. The Fairweather chain was purchased by a private Canadian investment consortium. McCrory had announced its intentions to convert all of the BiWay stores into a dollar store chain to be named Dollar Zone, named after their chain of dollar stores in the United States. These plans did not go through however, and in August 2001, all BiWay stores, save for a fe Toronto area locations, were shuttered for good and Hardof Wolf left with all of the employees' money. The courts finally forced Hardof Wolf to pay back some of the money it stole from the employees. This court case set precedent in Ontario bankruptcy case law. An article entitled , $32 million out-of-court settlement for Dylex creditors may further aid in explaining this case. A Forbes article dated October 8, 2001 'Riklis Driving' gives some details about how Riklis drained money from Dylex into other Riklis owned companies.
Recently, however, a few formerly "abandoned" BiWay stores have been converted to other uses, such as Giant Tiger
Giant Tiger
Giant Tiger Stores Limited is Canada’s third-largest chain of discount stores . Following the 2006 acquisition of Zellers and its parent, the Hudson's Bay Company, by American entrepreneur Jerry Zucker, Giant Tiger became the largest Canadian-owned discount retailer...
, The Bargain! Shop
The Bargain! Shop
The Bargain! Shop, also known as TB!S, is a discount variety store chain operating in all Anglophone provinces in Canada.The Bargain! Shop originated as a closeout store division of Woolworth Canada, developed out of some of the bankrupt assets of Bargain Harold's in 1991...
, and Dollarama
Dollarama
Dollarama is a chain of over 690 dollar stores across Canada. The company is headquartered in Montreal and, since 2009, is Canada's largest retailer of items for 2 dollars or less. The first Dollarama store was created at the shopping centre "Les promenades du St-Laurent" in Matane...
.