Herbert Haft
Encyclopedia
Herbert H. Haft was a Washington, D.C.
based businessman who was famous first for the development of discount store
s in the drug store, bookstore, and auto part
businesses, and later as a corporate raid
er. He grew up in Baltimore, Maryland, the son of a Russian-immigrant pharmacist
.
Trained as a pharmacist
at George Washington University
, Haft opened the first Dart Drug
discount store in 1955 in Washington, which he sold in 1984 at which time the chain had 75 stores. He also founded (with family members) Crown Books
(which was led by son Robert), Trak Auto, Combined Properties, and Total Beverage, and acquired part of Shoppers Food Warehouse.
Haft's Dart Group earned $250 million through greenmail
and stock sales during unsuccessful takeover attempts of retailers Safeway
and Stop & Shop
. In the 1990s he was involved in widely publicized conflict with his sons Ronald and Robert Haft
, and wife Gloria Haft over control of the Dart Group, a family business
.
In a 1986 speech to a group of George Washington University
alumni, Haft said that the secret of his success, was to borrow big: "If you owe someone several thousand dollars, you can't always sleep at night. If you owe someone several million dollars, the banker or supplier can't sleep. It's no use both of you worrying."
In 1998, Total Beverage was sold to Total Wine & More
and the remainder of Dart Group, except Crown Books, was purchased by Richfood, a grocery distributor for $200 million. Richfood quickly sold Trak Auto to a Tennessee investment group. Crown Books
filed for bankruptcy, and limped along on private investment until its closure in 2001.
In 1999, Herbert Haft launched HealthQuick, an online pharmacy, while his son Robert launched Vitamins.com. HealthQuick failed by 2001.
case, Parke-Davis & Co., threatened to stop supplying Haft's Dart Drug because of its discounts to customers, a court case that went to the United States Supreme Court, which found in favor of the retailer and against the supplier.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
based businessman who was famous first for the development of discount store
Discount store
A discount store is a type of department store, which sells products at prices lower than those asked by traditional retail outlets. Most discount department stores offer a wide assortment of goods; others specialize in such merchandise as jewelry, electronic equipment, or electrical appliances...
s in the drug store, bookstore, and auto part
Auto part
This is a list of auto parts, which are manufactured components of automobiles:-Body and exterior:Body components, including windows and trim:-Engine cooling system:* Air blower* Coolant hose* Cooling fan* Fan blade* Fan clutch* Radiator...
businesses, and later as a corporate raid
Corporate raid
A corporate raid is an American English business term for buying a large interest in a corporation and then using voting rights to enact measures directed at increasing the share value...
er. He grew up in Baltimore, Maryland, the son of a Russian-immigrant pharmacist
Pharmacist
Pharmacists are allied health professionals who practice in pharmacy, the field of health sciences focusing on safe and effective medication use...
.
Trained as a pharmacist
Pharmacist
Pharmacists are allied health professionals who practice in pharmacy, the field of health sciences focusing on safe and effective medication use...
at George Washington University
George Washington University
The George Washington University is a private, coeducational comprehensive university located in Washington, D.C. in the United States...
, Haft opened the first Dart Drug
Dart Drug
Dart Drug is a now-defunct chain of discount drug stores in the metropolitan Washington, DC region. It was founded in 1955, by Herbert Haft and his wife Gloria in Adams Morgan. The chain expanded to over 100 stores, and became a vehicle by which Herbert Haft engaged in greenmail activities against...
discount store in 1955 in Washington, which he sold in 1984 at which time the chain had 75 stores. He also founded (with family members) Crown Books
Crown Books
Crown Books Corporation was a bookseller headquartered in Lake Arbor, an unincorporated community in Prince George's County, Maryland, near Largo and Upper Marlboro. It was founded in the Washington, D.C., metro area by Robert Haft in 1977...
(which was led by son Robert), Trak Auto, Combined Properties, and Total Beverage, and acquired part of Shoppers Food Warehouse.
Haft's Dart Group earned $250 million through greenmail
Greenmail
Greenmail or greenmailing is the practice of purchasing enough shares in a firm to threaten a takeover and thereby forcing the target firm to buy those shares back at a premium in order to suspend the takeover....
and stock sales during unsuccessful takeover attempts of retailers Safeway
Safeway Inc.
Safeway Inc. , a Fortune 500 company, is North America's second largest supermarket chain after The Kroger Co., with, as of December 2010, 1,694 stores located throughout the western and central United States and western Canada. It also operates some stores in the Mid-Atlantic region of the Eastern...
and Stop & Shop
Stop & Shop
The Stop & Shop Supermarket Company is a chain of supermarkets located mostly in the northeastern United States. Its main rivals are Shaw's Star Market and Hannaford in New England, while ShopRite and the A&P family of supermarkets are its main competition in New York and New Jersey.- History :Stop...
. In the 1990s he was involved in widely publicized conflict with his sons Ronald and Robert Haft
Robert Haft
Robert Haft, is a successful entrepreneur, primarily in health care, and became a household name in the Washington, DC, Chicago, San Francisco, Houston, and Los Angeles markets for his Crown Books television commercial tagline, "Books cost too much."...
, and wife Gloria Haft over control of the Dart Group, a family business
Family business
A family business is a business in which one or more members of one or more families have a significant ownership interest and significant commitments toward the business’ overall well-being....
.
In a 1986 speech to a group of George Washington University
George Washington University
The George Washington University is a private, coeducational comprehensive university located in Washington, D.C. in the United States...
alumni, Haft said that the secret of his success, was to borrow big: "If you owe someone several thousand dollars, you can't always sleep at night. If you owe someone several million dollars, the banker or supplier can't sleep. It's no use both of you worrying."
In 1998, Total Beverage was sold to Total Wine & More
Total Wine & More
Total Wine & More is an American alcohol retailer founded in 1991 by David and Robert Trone through the opening of two wine stores in Delaware....
and the remainder of Dart Group, except Crown Books, was purchased by Richfood, a grocery distributor for $200 million. Richfood quickly sold Trak Auto to a Tennessee investment group. Crown Books
Crown Books
Crown Books Corporation was a bookseller headquartered in Lake Arbor, an unincorporated community in Prince George's County, Maryland, near Largo and Upper Marlboro. It was founded in the Washington, D.C., metro area by Robert Haft in 1977...
filed for bankruptcy, and limped along on private investment until its closure in 2001.
In 1999, Herbert Haft launched HealthQuick, an online pharmacy, while his son Robert launched Vitamins.com. HealthQuick failed by 2001.
Antitrust case
In a famous antitrustAntitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
case, Parke-Davis & Co., threatened to stop supplying Haft's Dart Drug because of its discounts to customers, a court case that went to the United States Supreme Court, which found in favor of the retailer and against the supplier.