Oriental Trading Company
Encyclopedia
The Oriental Trading Company is a direct marketing
company for novelties
, small toys, and party items. It was founded in 1932 as one of the United States
' first wholesale
companies. It is based in Omaha, Nebraska
, and its majority owner is the Carlyle Group
. It has an extensive line of Christian merchandise and is one of the largest players in that market.
In 2006 it was reported the company has 18 million customer names on file, mails 300 million catalogs annually and has more than 25,000 products. It has 1500000 square feet (139,354.6 m²) of office and warehouse space in Iowa and Nebraska, and employs more than 3,000.
, by Harry Watanabe. The company expanded to 17 shops in the Midwest. During World War II
, with restrictions against imports from Japan
, the company shrank back to its Omaha base. Watanabe then bought a ceramic shop which made Kewpie dolls and other ceramic items. Please note: This link results in an "Access Denied" page.
In 1954 it resumed its imports from Japan and was a major carnival supplier. In 1956 it launched its first catalog.
In 1977 Watanabe's son Terry Watanabe became president and its focus shifted from carnivals to supplying party goods for churches, schools, retailers, and individuals.
In 2000, Watanabe sold his entire stake in the company to Los Angeles
-based private equity
firm Brentwood Associates
, and resigned as CEO and President. Watanabe is alleged to have had alcohol and gambling problems resulting in losing US$204 million to the Rio and Caesars Palace
casinos in Las Vegas in 2007. Harrah's, which owns the two casinos, derived 5.6% of its revenues that year from Watanabe. He has paid $112 million but refused to pay the rest prompting Harrah's to file criminal charges against Watanabe. On July 8, 2010, a global settlement was reached between Harrah's Entertainment
and Watanabe resulting in a dismissal of both the civil and criminal cases.
In 2002 Brentwood Associates
entered into an agreement to expand the company.
In 2006 Carlyle Group
bought 68 percent interest in the company with Brentwood owning a reported 25 percent.
On August 24, 2010, Oriental Trading Company via OTC Holdings Corp. in case 10-12636 declared Chapter 11 bankruptcy protection in Delaware saying in its filing papers that it had $463 million in assets at April 3, 2010 and $756.6 million in liabililities with net sales of $485.4 million. It reported it was sending out 300 million catalogs a year and generates half its sales online.
Direct marketing
Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional...
company for novelties
Novelties
A novelty item is a small manufactured adornment, especially a personal adornment.- Novelty item :This term covers a range of small manufactured goods, such as*antiques*collectables*chocolates*esoterica*executive toys*gadgets*tools and implements...
, small toys, and party items. It was founded in 1932 as one of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
' first wholesale
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
companies. It is based in Omaha, Nebraska
Omaha, Nebraska
Omaha is the largest city in the state of Nebraska, United States, and is the county seat of Douglas County. It is located in the Midwestern United States on the Missouri River, about 20 miles north of the mouth of the Platte River...
, and its majority owner is the Carlyle Group
Carlyle Group
The Carlyle Group is an American-based global asset management firm, specializing in private equity, based in Washington, D.C. The Carlyle Group operates in four business areas: corporate private equity, real assets, market strategies and fund-of-funds, through its AlpInvest subsidiary...
. It has an extensive line of Christian merchandise and is one of the largest players in that market.
In 2006 it was reported the company has 18 million customer names on file, mails 300 million catalogs annually and has more than 25,000 products. It has 1500000 square feet (139,354.6 m²) of office and warehouse space in Iowa and Nebraska, and employs more than 3,000.
History
The company was founded as a gift shop in 1932 in Omaha, NebraskaOmaha, Nebraska
Omaha is the largest city in the state of Nebraska, United States, and is the county seat of Douglas County. It is located in the Midwestern United States on the Missouri River, about 20 miles north of the mouth of the Platte River...
, by Harry Watanabe. The company expanded to 17 shops in the Midwest. During World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, with restrictions against imports from Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, the company shrank back to its Omaha base. Watanabe then bought a ceramic shop which made Kewpie dolls and other ceramic items. Please note: This link results in an "Access Denied" page.
In 1954 it resumed its imports from Japan and was a major carnival supplier. In 1956 it launched its first catalog.
In 1977 Watanabe's son Terry Watanabe became president and its focus shifted from carnivals to supplying party goods for churches, schools, retailers, and individuals.
In 2000, Watanabe sold his entire stake in the company to Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
-based private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm Brentwood Associates
Brentwood Associates
Brentwood Associates is one of the oldest private equity firms in the US with groups focusing on both leveraged buyout and venture capital investments....
, and resigned as CEO and President. Watanabe is alleged to have had alcohol and gambling problems resulting in losing US$204 million to the Rio and Caesars Palace
Caesars Palace
Caesars Palace is a luxury hotel and casino located on the Las Vegas Strip in Paradise, Nevada, an unincorporated township in Clark County, Nevada, United States in the Las Vegas metropolitan area. Caesars Palace is owned and operated by Caesars Entertainment Corp....
casinos in Las Vegas in 2007. Harrah's, which owns the two casinos, derived 5.6% of its revenues that year from Watanabe. He has paid $112 million but refused to pay the rest prompting Harrah's to file criminal charges against Watanabe. On July 8, 2010, a global settlement was reached between Harrah's Entertainment
Harrah's Entertainment
Caesars Entertainment Corporation is a private gaming corporation that owns and operates over 50 casinos, hotels, and seven golf courses under several brands. The company, based in Paradise, Nevada, is the largest gaming company in the world, with yearly revenues $8.9 billion...
and Watanabe resulting in a dismissal of both the civil and criminal cases.
In 2002 Brentwood Associates
Brentwood Associates
Brentwood Associates is one of the oldest private equity firms in the US with groups focusing on both leveraged buyout and venture capital investments....
entered into an agreement to expand the company.
In 2006 Carlyle Group
Carlyle Group
The Carlyle Group is an American-based global asset management firm, specializing in private equity, based in Washington, D.C. The Carlyle Group operates in four business areas: corporate private equity, real assets, market strategies and fund-of-funds, through its AlpInvest subsidiary...
bought 68 percent interest in the company with Brentwood owning a reported 25 percent.
On August 24, 2010, Oriental Trading Company via OTC Holdings Corp. in case 10-12636 declared Chapter 11 bankruptcy protection in Delaware saying in its filing papers that it had $463 million in assets at April 3, 2010 and $756.6 million in liabililities with net sales of $485.4 million. It reported it was sending out 300 million catalogs a year and generates half its sales online.