Davega Stores
Davega Stores was a consumer durables, appliance, sporting goods, and apparel chain which operated 27 stores in the metropolitan New York City area in 1954.
The business was founded by I. Davega in 1879 at Third Avenue and 34th Street. H. M. Stein was the company's president in the mid-1950s. Its vice-president was Abram Davega, son of I. Davega.{{cite news|title=Diamond Jubilee Award (photo caption)|url=https://www.nytimes.com/1954/05/27/archives/symes-is-selected-by-pennsylvania-railroad-again-omits-dividend-as.html|work=The New York Times|date=May 27, 1954|page=5|access-date=February 12, 2020}} The firm was a division of the Atlas Stores Corporation.New Davega Store, The Wall Street Journal, April 23, 1932, p. 12.
Among the products sold by the retailer were televisions, radios,{{cite news|last=Baker|first=Richard T.|title=Inquiry's TV Rating Is Behind Kefauver's|url=https://www.nytimes.com/1954/04/23/archives/inquirys-tv-rating-is-behind-kefauvers-public-accepts-inquiry-in.html|work=The New York Times|date=April 23, 1954|page=1|access-date=February 12, 2020}} and baseball board games. The Kolster Radio Corporation signed an agreement with Davega Stores in late 1928, representing a significant addition to the retail outlets of the radio merchandise dealer.Kolster, Wall Street Journal, November 26, 1928, p. 12. In 1936, Davega became a principal stockholder of Majestic Radio & Television.{{cite news|title=Majestic Radio Offering Closed|newspaper=Brooklyn Daily Eagle|date=October 30, 1936|page=27}}
Business history
Davega Stores' 14th location opened at 166-07 Jamaica Avenue in Jamaica, Queens, in November 1928.New Davega Store, Wall Street Journal, November 14, 1928, p. 13. Their 27th store opened at 924 Flatbush Avenue, Brooklyn, in April 1932. By May 1953, there were 5 New Jersey locations (Hackensack, Jersey City, Newark, New Brunswick, and Paterson) and 10 New York locations (Manhattan, Astoria, Brooklyn, Flushing, Hempstead, Jamaica, Rego Park, White Plains, Syosset, and Yonkers).{{cite web|title=Popular Mechanics Magazine|url=https://books.google.com/books?id=aNwDAAAAMBAJ&q=davega|website=Google Books|accessdate=25 January 2018|pages=171|date=May 1953|publisher = Hearst Magazines}}
In June 1953 the business announced a sharp increase in profit over the previous year which ended on March 31, 1952. Net income came to $118,998, amounting to 0.24 per common share. The firm's inventory increased by $143,000 over the previous year, with an inventory totaling $4,389,000.{{cite news|title=Rise In Net Shown By Davega Stores – $118,998, or 24c a Common Share, Against $62,228, or 2c — Other Reports|url=https://www.nytimes.com/1953/06/22/archives/rise-in-net-shown-by-davega-stores-118998-or-24c-a-common-share.html|work=The New York Times|date=June 22, 1953|page=26|access-date=February 12, 2020}} On December 16, 1953 Davega Stores' directors took no action on a common dividend, which had been 0.15, paid semiannually to shareholders. A regular quarterly dividend of 0.25 on 5 per cent preferred stock was declared, payable on January 2, 1954.{{cite news|title=Fidelity & Deposit Votes 3 Dividends – 33 1/3% in Stock, Extra of 25c and 75c Regular Declared – Capital Raised Million|url=https://www.nytimes.com/1953/12/17/archives/fidelity-deposit-votes-3-dividends-33-13-in-stock-extra-of-25c-and.html|work=The New York Times|date=December 17, 1953|page=63|access-date=February 11, 2020}} In May 1954 the firm was generating $25,000,000 in annual revenue.
In April 1954, Davega Stores employed large newspaper space and window displays in marketing Line Drive, a baseball game manufactured by
Lord & Freber of Los Angeles, California. The product tested players team-managing ability and playing style.{{cite news|title=Advertising and Marketing News|url=https://www.nytimes.com/1954/04/08/archives/advertising-and-marketing-news.html|work=The New York Times|date=April 8, 1954|page=48|access-date=February 12, 2020}}
The corporation opened a new store at 152 West 42nd Street, in the Times Square area, on November 6, 1954.{{cite news|title=Financial And Business Sidelights Of The Day|url=https://www.nytimes.com/1954/11/05/archives/financial-and-business-sidelights-of-the-day.html|work=The New York Times|date=November 5, 1954|page=31|access-date=February 12, 2020}} On opening day the store offered bargains like a $20 table radio for $0.98 and reconditioned television receivers for $7.95. It remained open all night the first day of business and until twelve midnight the following day.{{cite news|title='Financial And Business Sidelights Of The Day|url=https://www.nytimes.com/1954/11/06/archives/financial-and-business-sidelights-of-the-day.html|work=The New York Times|date=November 6, 1954|page=25|access-date=February 12, 2020}}
Bankruptcy
A federal court ordered Davega Stores into straight bankruptcy in April 1963, when its court-appointed trustee could not formulate a reorganization plan under which the chain could pay its debts.Henry Modell & Co. Takes Over Bankrupt Davega Discount Chain, Wall Street Journal, July 9, 1963, p. 8. Eight of its stores were acquired by Henry Modell & Co. (parent company of today's Modell's Sporting Goods{{cite web|title=Henry Modell & Company Inc. History|url=http://www.fundinguniverse.com/company-histories/henry-modell-company-inc-history/|website=www.FundingUniverse.com|accessdate=25 January 2018}}), which submitted a winning bid of $311,000 in an April 1963 auction. Henry Modell was the president of the newly formed Modell's Davega, Inc., which combined eight Davega Stores with its four discount locations. The headquarters of the new business was moved to Davega's store in the Commodore Hotel.