Compiled, Edited and Some Original Content by Ret Martin
A New Direction and The End 2000 – 2007
2000 – 2007, Brownwood, TX, Dunlaps. This store was established along the same lines as Stephenville in a portion of a vacant Walmart. These types of locations existed all over the country, former Walmarts and other big-box retailers which had moved to larger facilities in town, leaving big, empty spaces that could be subdivided. A Dunlaps store could be easily finished out in one portion of the space, and the rest could go to one or more smaller stores. Since independent, family-owned department stores were disappearing, and the federal government had placed heavy restrictions on the use of loss-carry-forward, this was the most promising method for expanding the Company.
2000 – 2007, Carlsbad, NM, Carlsbad Mall, Dunlaps. The store was moved from the Downtown Collin Gerrells & David James location, to the former J.C. Penney location at the mall.
Tom Hoskins, president of The Dunlap Company, retired in February 2000, after 38 years with the company. He was succeeded by Eddie Martin, son of Edward Martin. Eddie was an attorney by education and practice. Tom was the last member of the Hoskins family to be involved in the business. His brothers, Chuck and Joe had previously left the Company for other opportunities.
In March 2000, a tornado ripped through the downtown area of Fort Worth. Many buildings were badly damaged, and two people were killed by the collapse of a brick wall just a few blocks away from the Company’s 200 Greenleaf headquarters building. The headquarters building sustained no damage, but streets throughout the area were blocked off on the following morning. A few operations employees were able to reach the building before the streets were closed, but the rest of the office staff was stopped a block away on White Settlement Road. Across Greenleaf Street from the offices was Williams Tool Company, with a series of connected buildings that stretched all the way to White Settlement Road. The store manager at Williams invited the Dunlaps office employees to come through his store all the way through to a door that was directly across the street from the office, so the office was able to be staffed up to support the stores, despite the roadblocks. An interesting observation, it was noted by several employees that the roadblocks apparently did not apply to UPS and FedEx trucks, because those vehicles freely moved past the police officers with no impediment.
Led by Eddie Martin, and in response to changes in both the wholesale and retail markets, the Company began a vigorous campaign to concentrate store locations in the south-central and southwest United States, to centralize merchandise buying, advertising and credit card operations, and to unify the design and presentation of all stores through moving, remodeling and rebranding as Dunlaps. The Stephenville and Brownwood stores were the template. Mall locations would be closed as leases expired, and emphasis would be placed on strip centers and on the evolving, suburban power center/lifestyle center locations in moderate-size markets. In addition, the stores were divided into regions, and Regional Managers were selected to oversee them, all reporting to Dale Mathews as Director of Store Operations. Dale had been with the Company since 1974.
During this period, the Company’s vendors were consolidating their sales operations, and the Apparel Mart in Dallas was closed – the building itself, the main hall of which had been featured in the movie “Logan’s Run”, was later torn down – eliminating the efficiency of Dunlaps’ decentralized buying method. The days of sending store managers and buyers to market from every store or group of stores were over. The era of the road salesman was also over. In a period of about one year, Company purchasing shifted from about 5% corporate to 100% corporate, the corporate buying staff was doubled, and a corporate advertising department was established. The internet domain, Dunlaps.com was established and a central distribution center was opened in the Mercantile development in north Fort Worth to receive, repack and reship any shipments that could not be drop-shipped directly from vendors to the stores. Using and potentially expanding the facility as a fulfillment center for internet sales was studied at the time, but using Penney’s internet business as a model, the equivalent amount of business would have been about the same annual volume as the Pauls Valley store, which seemed hardly worth developing a full e-commerce website in those days. Dunlaps.com was used as a store locator, an advertising platform, and a portal for the Company’s newly-centralized credit card operations using First Data Resources for processing. Nordstrom later demonstrated that an e-commerce platform could be successfully integrated with brick-and-mortar locations, with internet sales accounting for more than 30% of their business by 2019, but that was a process that took them almost two decades to develop. Acquisition of an established catalogue/e-commerce fulfillment center was also considered during this time, with an eye toward establishing a foothold in this growing area, but no deal could be done that seemed worth the investment. With dwindling cash reserves, and e-commerce in its infancy, it seemed too early. In truth, it was probably exactly the right time, if not a year or two late.
In December 2000, the Company’s offices were moved from 200 Greenleaf St. to 200 Bailey Ave. in Fort Worth, Texas, as a result of a profitable real estate deal initiated by Russell Martin, son of Edward Martin. The Company also began the process of replacing and updating computer systems and equipment, with the attendant problems of going from decentralized to centralized operations. In addition, NCR announced it would discontinue support for the venerable 9800 mainframe computer, so a new system, based on an IBM AS400 mini-computer running JDA software was installed along with a rack of Dell servers to handle internet and intranet communications. Marking and receiving, inventory management – including the department number scheme used for more than half a century – daily cash reporting operations, and every cash register had to be replaced. Every employee in every store had to be retrained. At “go-live” it was as if almost every person in the Company would be starting a new job. The technology change was begun in April 2001 with a target date to go live on the new system of April 4, 2002.
Halfway through the project, the terror attacks of 9/11 occurred. The Company had no personnel in New York at the time, but some key personnel who were travelling had to scramble to make other arrangements to get home. Dunlaps’ management held a meeting on September 12th, and a choice was presented: continue with the technology upgrade, or begin a going-out-of-business sale in all stores to coincide with the Christmas season. There was no going back to the old system. After some discussion, it was decided to continue with the conversion and to remain in business. The Company was committed. It turned out that President George W. Bush would declare that it was everyone’s patriotic duty to go Christmas Shopping, and although the retail industry had been in a slump during the first half of 2001, Christmas 2001 was strong. It was the last profitable year for The Dunlap Company.
In April 2002, the conversion would present another huge challenge, because at “go-live”, the new accounts payable system would not produce a check! Within a week, Dunlaps’ accounts were on hold with every single vendor. During the three weeks it took to resolve the problem, Reg, Edward, and CFO Craig Peterson called every vendor to negotiate terms in order to get merchandise shipped. Manual checks were cut for estimated payment amounts. It took months to reconcile the payments once the payables system was online, but a hard lesson had been learned. The world had changed in the Company’s relationships with vendors, even vendors with whom the Company had dealt for 50 years.
Previously, the financial relationship had been with the vendor. Now the financial relationship was with the factor, that is, the bank from whom the vendor was borrowing money. There was no handshake, pat-on-the-back, good-ole’-boy, “we know you’re good for it” relationship anymore. The standard terms for apparel were 8% discount if paid in 10 days, net if paid in 30 days. The Company had large cash reserves for decades, and wanted to take advantage of the 8% discount, so payment was always made in 10 days. Despite the fact that Dunlaps was known for paying quickly, one missed payment stopped everything. The Company had benefitted from the other side of this process for some time. Because of its reputation for quick payment, Dunlaps was often contacted by vendors to take discounted, over-stock shipments that had been sold to other stores that could not pay. It was a shock to be on the wrong side of the equation, and particularly frustrating since it wasn’t because of a lack of funds; rather, it was because a computer wouldn’t write a check. During that three-week period, everyone in Dunlaps’ management thought back to the meeting on September 12, 2001 and thought it might have been better to have started that GOB sale. That “what if?” thought would return just a few years later.
2001 – 2007, Bullhead City, AZ, Dunlaps.
2001 – 2007, Lake Havasu City, AZ, Dunlaps.
2001 – 2007, Glenwood Springs, CO, Dunlaps. Former Beall’s location. The Coal Seam Fire in 2002 caused the evacuation and closure of the store, but no one was injured and the store sustained no damage. The fire stopped across the street burning out several cars in a parking lot there. Some months later, the store manager left the Company, and a replacement was not readily available, so Reg Martin volunteered to run the store until a new manager was hired. At 70 years of age, Reg spent a month, working bell-to-bell to keep the store operating.
2001 – 2007, Liberal, KS, Dunlaps.
2001 – 2007, Searcy, AR, M.M.Cohn.
2001 – 2001, Searcy, AR, Mam’selle Shop. The store’s inventory and staff were consolidated into the M.M. Cohn store.
2001 – 2006, Decatur, AL, Rogers Select. The store was moved from a smaller location within the shopping center.
During 2001, the Company began reviewing other long-standing relationships with the goal of decreasing costs and improving the services received. The Company’s banking, property and casualty insurance and insurance agency, and financial audit providers were all changed.
In August 2002, Doug Dunlap, son of Ira G. Dunlap Jr. retired from the Company. Doug’s son Jeff had worked for the Company briefly, making 5 generations of Dunlaps to be involved in the business. Doug was the last member of the Dunlap family to be actively involved.
2002 – 2007, Ada, OK, Dunlaps. Former J.C. Penney location.
2002 – 2007, Del Rio TX, Dunlaps.
2002 – 2007, Granbury, TX, Dunlaps. The location was sold to Russell Womack, who reopened as Russell’s after resigning from Dunlaps and purchasing the rights to the Russell’s name.
2002 – 2007, Midland, TX, Wadley Ave., Dunlaps. The Store was moved from the Dellwood Plaza location. The street was named for the same man from whom the original Midland store, Addison Wadley, had been purchased in 1941.
2002 – 2007, Montrose, CO, Dunlaps.
In January of 2003 the Marmid-owned partnership, MFAL Partners, purchased the IBC Bank building in Marble Falls, Texas with the intent of eventually opening a Dunlaps store at that location. A fire damaged the building while workers were removing safe deposit boxes from the bank’s vault. A cause was never determined, but a spark from a cutting torch may have started the blaze. The store was never opened, and the building was later sold to New Quest Properties of Houston.
Store groups in Utah and Oregon were also considered for acquisition during this time, but favorable deals were never reached.
In March of 2003, the Company began buying imports through the Saks Inc. AMC program. The opportunity came by way of Jim Leamy, who had been hired recently as General Merchandise Manager, bringing many years of merchandising experience from Belk, Saks Inc. and other retailers.
2003 – 2007, Amarillo, TX, 34th St., Dunlaps. The store was moved from the Western Plaza location.
2003 – 2007, Durango, CO, Dunlaps.
2003 – 2007, Eagle Pass, TX, Dunlaps.
2003 – 2007, Waco, TX, Bosque Blvd., Dunlaps. This store was the result of a complete remodel and name change from Goldstein-Migel at Lake Air Mall location, when the mall was demolished and reconfigured into a “lifestyle center”.
2003 – 2007, Huntsville, TX, Kerr’s. This store was the result of a consolidation of three spaces in the mall.
In September of 2003, the Company converted its borrowing facility from an unsecured line of credit at Frost Bank to a secured line of credit with Wells Fargo Retail Finance, and moved its banking from Frost Bank to Wells Fargo Bank. Gordon Brothers, a venerable valuation and liquidation company, began periodic inventory valuation audits for Wells Fargo.
Dale Mathews retired as Vice President and Director of Store Operations to pursue other business opportunities, and Russell Womack took over the role, bringing 35 years of store experience into the office.
The Company’s headquarters building at 200 Bailey Avenue in Fort Worth was sold, in another successful deal initiated by Russell Martin. The Company continued to lease offices in the building. In December of 2003, the Company sold its private label credit card operation to Shoppers Charge.
2004 – 2007, Abilene, TX, Catclaw Drive, Dunlaps. The store was moved from the Mall of Abilene location.
2004 – 2007, Lubbock,TX , 50th & Boston, Dunlaps. The store was moved from the 50th & Elgin location.
2004 – 2007, Roswell, NM, Dunlaps.
2004 – 2007, San Angelo, TX, Knickerbocker Ave., Dunlaps. The store which had struggled at its inception demonstrated enough success to be converted to the Company’s new format and was moved from the Sunset Dr. location.
2004 – 2007, Wichita Falls, TX, Parker Square, Dunlaps. Formerly McClurkans. The store was moved from the old location within the shopping center.
In 2005, Hurricane Rita caused the temporary closure of the Beaumont, Huntsville, Lufkin and Victoria stores. Only The White House in Beaumont sustained water and wind damage, none of it very bad. The other stores only had business-interruption claims to file. It was the first year the Company had ever actually purchased business interruption insurance, making Ret Martin look like a genius. His contention was, “Even a blind squirrel gets a few nuts.” The insurance company had provided a significant savings on the property and casualty policy that year, so they had made a case for adding business interruption coverage to be paid for with the savings. No doubt they regretted offering the coverage.
2006 – 2007, Odessa, TX, Grandview Ave., Dunlaps. The store was moved from the Live Oak Center location.
2006 – 2007, Victoria, TX, Navarro St., Dunlaps. The store was moved from the Laurent St. location. This was the last location to be opened by The Dunlap Company.
Plans were in the works to add a Dunlaps location in north Burleson, TX, in a power center on the west side of I-35. Signs announcing the location remained on the property for months after the Company closed. Also, plans were being made to renovate the Stripling & Cox building on Camp Bowie Blvd., reducing the footprint of the store to about 60,000 square feet on the first and second floors at the west end of the building, converting the other 40,000 square feet on the first and second floors in the center of the building to mixed-use, retail-and-office, and restoring the parking deck on the east end of the building (which had been enclosed for additional store square footage in the 1960s), all while updating the façade, returning the structure to a mid-20th century style, which is how the building began its life in 1949. The store would have been rebranded as Dunlaps, and would have continued to be the flagship store of the Company.
Stephenville, Brownwood, Bullhead City, Lake Havasu City, Glenwood Springs, Liberal, Ada, Del Rio, Granbury, Midland, Montrose, Amarillo, Durango, Eagle Pass, Waco, Abilene, Lubbock, Roswell, San Angelo, Wichita Falls, Odessa, Victoria, Burleson and Camp Bowie were envisioned as a core group of stores representing the new direction for The Dunlap Company. The new store template was easy to replicate, making the Company easier to run, easier to grow, and easier to market either to the financial community or to other companies as a potential acquisition. It was a vision that would never be allowed to come fully into focus. The retailing, banking and equity financing environments were changing rapidly and time was running out. The Company had used its cash reserves to finance the technology change in 2002 and to move, remodel and/or acquire locations along the lines of the new store template established in Stephenville.
Attempts to obtain financing for on-going operations had failed. Since early 2006, Dunlaps’ management had seen and heard rumblings in the financial markets of what would become the Great Recession in 2008. Lenders were increasingly hesitant to extend credit, investors hesitant to put up capital. Everyone wanted to “wait 6 months”. Other options that had been explored during the preceding months were potential mergers with or outright sales to Stage Stores or to Belk, either of which would have been fairly natural combinations with few duplications in markets, but deals never came together. By mid-2007, it was time to go to market to buy for the Christmas season, and no one wanted to provide the necessary financing.
On June 1, 2007, it was announced that The Dunlap Company would close all of its remaining 38 locations. The Company was out of time and out of money, so it was decided to contract with Gordon Brothers Retail Partners to liquidate assets and to close all department store operations. An ad hoc creditors’ committee was established and counsel was hired to settle all claims. The Chief Financial Officer, the General Merchandise Manager, the Divisional Merchandise Managers, the buying staff, the Advertising Director and the advertising staff, all added in the previous five years, were released over the course of the first few weeks of the liquidation process, as Gordon Brothers’ staff would fulfill all such functions during the liquidation. Ret Martin acted as the primary liaison between Gordon Brothers’ corporate staff and store personnel. Reg Martin assisted with vendor communications, and Eddie Martin handled creditor communications, often fielding unpleasant, and sometimes threatening calls. It was a grueling process, but only 5% of the Company’s 900 employees left during the going-out-of-business process, a testament to their dedication and loyalty.
Attempts to obtain financing to continue operations with a group of 19 stores, “the New Nineteen”, also failed. Russell Womack, would have run the operation as President, with Ret Martin as Vice President of Operations. When the financing failed to materialize, Womack resigned, after 38 years with the Company. The last store location, Stripling & Cox on Camp Bowie Boulevard in Fort Worth, Texas, closed on September 28th. The Dunlap Company had operated stores for 117 years. It was the last of the family-owned, regional department stores.
The Company’s offices at 200 Bailey Avenue in Fort Worth, were closed on October 31st. Ret led a small and dedicated team of office personnel, with the help of his wife, Earlene, and alongside Gordon Brothers personnel, until the last day, and well into that night. On November 1st, Ret handed the keys of the building over to the landlord.
Some years later, Ret told a colleague, “If somehow we had survived 2007, we never would have survived 2008. The GOB would have been exponentially worse with so many other retailers doing the same thing. Smarter men than we lost retail businesses in the Great Recession, and still are as Internet retailing continues to grow. It’s a disappointment, and we will always consider the ‘what ifs’, but we have nothing to be ashamed of. We ran a great business for a very long time. We honored and built on the Dunlap family’s and Retha Martin’s legacy. We had a great team and great customers who stuck with us to the end. We missed out on some opportunities that may or may not have made a difference, but so did other retailers. It’s sad that it’s over, but the world has moved on. We have to move on too.”
Sources:
Records of The Dunlap Company, compiled and maintained by Ruel C. Martin, R.L. Turley, Richard G. Sprott, Reg Martin, and Ret Martin.
Information compiled by Reg Martin from Veda Rose Dunlap Stanbery, Clyde Hilliard Dunlap Jr., and Ira George Dunlap Jr., grandchildren of Hilliard George Washington Dunlap.
An Interview with R.L. Turley, transcribed by Ret Martin.
Only The Dead Have Done Enough, a memoir by Ira. G. Dunlap, Jr.
Hoskilonians, by Tom Hoskins.
Other remembrances passed down through the 5 generations of the Dunlap, Martin and Hoskins families and coworkers who worked to make The Dunlap Company a successful enterprise.
A Personal Note:
The Dunlap Company was a part of my family, a part of my life from my earliest memories. When the stores were closed, it was like losing a member of that family. Many of my coworkers I had known since my childhood. Many of my earliest memories are from the Downtown Lubbock store on Avenue M, where my father, Reg Martin, was store manager, and my uncle, Richard Sprott, was operations manager. My first job was packing dishes for a Moonlight Madness Sale at the 50th Street store in Lubbock, when I was 14 years old. I sorted glass shelving at the warehouse on Texas Avenue in Lubbock during Spring Break when I was 15, and marked merchandise at 50th Street the following summer. I sold menswear and worked in the cash office at the Seminary South store in Fort Worth, sold menswear again at the Waco store during my gap year between high school and college, and I worked in the accounting office at Company headquarters on Greenleaf Street in Fort Worth while I attended TCU.
The Company not only provided a livelihood for my family and for the families of thousands of employees over the years, it provided opportunities for me to meet people and see places I might never have experienced otherwise. I’ve seen the Maine coast with its rocky shore and lighthouses, and the sandy beaches of southern California. As a passenger I’ve ridden in the right-hand seat in the cockpit of four Company planes, and have flown far enough out past Port O’Connor, Texas to see the blue water of the Gulf of Mexico, and flown a figure-eight around Ship Rock in New Mexico. I’ve seen the sun reflecting off playa lakes like a thousand jewels scattered across the high plains of the Texas Panhandle. I’ve experienced the fear and watched the heroic actions of our pilot, Mont Jennings, when first, the cargo hatch of the Beechcraft Barron popped open in flight, and then the landing gear would not deploy, forcing him to hand crank the gear down, bloodying his knuckles as he continued to fly the plane, ultimately delivering my family to our destination. I was four or five years old, and my sister, Katherine, aged eight or nine, was belted into the seat right next to the open cargo hatch.
From the air, I’ve watched the sun set behind Chicago, casting shadows of the skyscrapers across a frozen Lake Michigan. From the tarmac, I’ve watched the FedEx planes from all over the country lining up in the pattern to land in Memphis at nightfall. I’ve walked the streets of the garment district in New York City, and dealt with the many characters employed there. I’ve worked with men and women of all ages, of every faith, of every race and of every color, people from all over the country and from all over the world. I’ve stayed in the smallest, most outdated hotel rooms at the Milford Plaza Hotel, ridden five-to-a-cab from LaGuardia into The City, eaten in New York diners, had a shoeshine on 5th Avenue, been to a Broadway musical, and taken in the views from the observation deck of the Empire State Building. I’ve walked the miles of corridors of the Dallas Apparel Mart, and met with dealers on every floor of the Dallas World Trade Center. I’ve watched glass blowers produce blue-rimmed stemware in Juarez, Mexico. I’ve watched it snow in Presque Isle, Maine, and rain in Victoria, Texas. I’ve delivered fur coats to the Texas Unclaimed Property Division, and signed corporate reorganization documents in the Texas Secretary of State’s office. I’ve driven thousands of miles through a dozen states in all kinds of weather, through plains, forests and mountains, and across the Mississippi River. I’ve seen miles and miles of pump-jacks and acres and acres of cotton.
I’ve seen the fear, anger and haughtiness of some employees, managers and former owners, when even as the Company provided us with a potentially profitable acquisition, it provided them with continued employment, the continuation of the business they built, and some remnant of dignity. And I’ve seen other employees, managers and former owners embrace the Company and gladly become a part of it. I’ve spent the wee-hours of the morning trying to stay awake, propped up in a shoe department chair, waiting for the sun to come up after thieves broke out a set of glass doors to steal a few dollars-worth of dresses. I’ve experienced the sadness and disappointment of confronting managers about theft and dishonesty, terminating their employment after years of service.
I’ve experienced the pride and satisfaction of seeing my wife’s bluebonnet cotton throw design sell successfully and go far-and-wide, bringing comfort to the elderly, serving as a reminder of home to Texans in other parts of the country, and even to missionaries in other parts of the world, and I had the privilege of working beside my wife Earlene as she helped close the corporate offices. I had the privilege of editing books for my mentor and boss, Tom Hoskins: Billie’s Journey; New Moore, Texas; and Hoskilonians. I had the privilege of working with my family: my Grandfather Retha Martin; my Great-Uncle Ruel Martin; my Dad, Reg Martin; my aunt Callie Chalk; my uncles Edward Martin and Richard Sprott; my brothers Richard and Jonathan Martin; my cousins, Eddie and Russell Martin and Rutley Chalk; and my cousin-in-law, Curtis Wheat. There are dozens of memories, good and bad, years of successes and failures, laughs and frustrations. It wasn’t always great, and often it felt pretty dysfunctional, but what work environment doesn’t have its challenges? With The Dunlap Company, we cared about one another; at least I did, and I always thought others did as well. That’s why people stayed.
Finally, there was the privilege of June1, 2007, when it fell to me as the head of human resources, to announce to the headquarters staff that The Dunlap Company was closing and that half of them would be laid off that day. As we gathered in the conference room on the third floor of our offices at 200 Bailey Avenue in Fort Worth, I started with, “I’m sure you’re all wondering why we’ve called this meeting…” They started laughing, and I asked them why. They answered, “Ret, we’ve been expecting this for the last two weeks.” The tension lifted, I provided the information they needed to have, and we completed the meeting with tears and laughter. It was the worst day and the best day of my professional life. You don’t really know how good your people are until you go through something like that. They were troopers, dedicated, loyal, good-natured and hardworking to the end. It was a privilege to have known them and to have worked with them.
Late on the night of the following October 31st, Earlene and I, along with a single representative of Gordon Brothers, struggled to haul the AS-400 computer up onto the trailer of its purchaser, who had failed to bring sufficient help or equipment. One lamp shown down over the back door of the office as the buyer drove off into the darkness. No theater could have set the scene more poignantly. The next day, we handed the keys of the building over to the landlord. Afterward, on the way down in the elevator, Earlene asked me, “What now?” I said, “We get to live our lives.”
Or so we thought. For months after the end, we had folding tables and stacks of boxes full of Dunlap paperwork sitting in our living room as we answered credit purchase challenges, verification of employment requests, and inquiries from city and state officials. Bad check collections had to be deposited, unemployment claims had to be verified, and withdrawal notices had to be finalized. It took quite a bit of time, emotional energy and physical effort, but it finally dwindled down to a trickle.
While these personal experiences were not particularly earth-shattering, nor did they have profound effects on world events, they did affect my life in a profound way, serving in large measure to make me who I am. In that light, I hope the story of The Dunlap Company has a lasting impact for good, illustrating the value of hard work, determination, learning from mistakes, providing value, treating people with kindness, and that all things change. The stores are gone, but the legacy and the people go on.
Ret Martin
May, 2021