Interstate Department Stores

Interstate Department Stores, Inc., was an American holding company for a chain of small department stores, founded in Delaware in 1928 . After a very rapid expansion as the result of acquisition and expansion of two discount store chains acquired in 1959 and 1960 and also two toy store chains acquired in 1967 and 1969, the firm was renamed in 1970 as Interstate Stores, Inc., to better reflect its business. Increased competition and the changes in consumer buying habits eventually led to decreased sales in the late 1960s and early 1970s which forced the firm to file for bankruptcy in 1974. After shedding all of its non-performing units, the firm was able to exit bankruptcy with the entire toy division intact along with a small remnant of the department store division in 1978. The firm was renamed Toys "R" Us upon emergence from bankruptcy.

Interstate Department Stores was incorporated in Delaware on February 14, 1928, as a holding company to operate twenty-three department stores in the states of Illinois, Michigan, Indiana, New York, Ohio, Wisconsin, Kentucky, and West Virginia. The first stores were obtained by combining the properties associated with the Federman Department Stores and Stillman Department Stores groups. During this process, individual stores kept their individual names, and local management and staff. Leo G. Federman was selected as the company's first president. The oldest store had been in operations for 20 years. By August of that year, Interstate had acquired or built four additional stores and had opened the Hill's Dry Goods Co. in Davenport, Iowa, and The Evansville Dry Goods Co. in Evansville, Indiana.

In October 1929, Interstate acquired the Aurora Dry Goods Company of Aurora, Illinois, and the Waukegan Dry Goods Co. of Waukegan, Illinois.

After opening two stores during 1935, Interstate had 40 stores. In 1952, the firm had 47 department stores.

By 1958 Interstate operated 48 stores in fifteen states, selling low- and medium-price merchandise.

In 1959, Interstate entered the discount department store field by the acquisition of the two-store Los Angeles-based White Front chain in April for $1.6 million and starting of the new discount chain through the opening a Family Fair store in Toledo, Ohio, and Canton, Ohio, in August and October, respectively. At this time, Interstate had 49 conventional department stores

A year later, Interstate bought the Topps Department Stores discount chain for $4 million. By 1963, White Front had 11 stores. Interstate managed the discount chains, opening more stores.

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