Duane Reade
{{Use mdy dates|date=February 2023}}
{{Short description|American pharmacy and convenience store chain}}
{{Infobox company
| name = Duane Reade Inc.
| logo = File:Duane Reade Logo.svg
| logo_size = 200px
| image = Duane_Reade_Pharmacy_Storefront_(48206542307).jpg
| image_caption = Store in Chelsea, Manhattan
| type = Subsidiary
| industry = Retail
| fate =
| predecessor =
| successor =
| founded = {{Start date and age|1960}}, in New York, New York, U.S.
| founders = {{unbulleted list|Abraham Cohen|Eli Cohen|Jack Cohen}}
| defunct =
| hq_location = 40 Wall Street
| hq_location_city = New York, New York
| hq_location_country = U.S.
| area_served = New York metropolitan area
| key_people = Gregory Wasson (former president & CEO)
| services = Pharmacy
| revenue = {{increase}} US$1.58 billion
| revenue_year = 2006
| products =
| owner = Walgreens Boots Alliance
| num_employees =
| num_employees_year =
| parent = Walgreens
| website = {{URL| https://www.walgreens.com/topic/duane-reade/duane-reade.jsp}}
}}
Duane Reade Inc. ({{IPAc-en||d|w|eɪ|n|_|ˈ|r|iː|d}} {{respell|dwayn|_|REED}}) is a chain of pharmacy and convenience stores owned by Walgreens. Its stores are primarily in New York (metropolitan New York City and Nassau, Suffolk, Westchester, Rockland, and Fairfield counties) in addition to in New Jersey. They are known for high-volume and small store layouts in densely populated Manhattan locations. In 2012, the company headquarters moved to 40 Wall Street in Lower Manhattan which is the location of its newest flagship store.{{Cite news|url=https://therealdeal.com/2012/01/05/duane-reade-to-move-corporate-offices-to-40-wall/|title=Duane Reade to move corporate offices to 40 Wall|date=2012-01-05|work=The Real Deal New York|access-date=2018-03-23|language=en-US}}
History
Founded in 1960, the chain was started with three stores by Abraham, Eli, and Jack Cohen with a warehouse located between Duane Street and Reade Street on Broadway in Lower Manhattan.Mount, Ian (2005-05-29) "[http://nymag.com/nymetro/shopping/features/11908/ The Mystery of Duane Reade]". nymag.com. Retrieved July 3, 2007. "Founded in 1960 by the brothers Abraham, Eli, and Jack Cohen, Duane Reade started as a three-store health-and-beauty chain that took the name of the two streets that bounded its lower-Broadway warehouse." Duane Reade takes its name from the company's first successful full-service drugstore, which opened in 1960 on Broadway between Duane and Reade Streets in Tribeca, just north of the Financial District. The streets themselves were named after early American politicians, James Duane (1733–1797) and Joseph Reade (1694–1771).Pickman, Sarah (2006-09-28) "[http://archive.archaeology.org/online/features/nycolonial/name.html]". Archaeology. Retrieved June 17, 2013.
The Cohen family sold Duane Reade to Bain Capital in 1992{{cite news |url=http://findarticles.com/p/articles/mi_hb3007/is_n19_v14/ai_n28617449 |title=Duane Reade sold to investment group |work=Chain Drug Review |publisher=Racher Press, Inc. |location=New York |date=July 13, 1992 |access-date=October 10, 2008 }} for a reported $239 million.{{cite news |url=http://findarticles.com/p/articles/mi_hb3007/is_n13_v15/ai_n28623833 |title=July: family-owned Duane Reade is sold; F&M files with SEC for public offering |work=Chain Drug Review |publisher=Racher Press, Inc. |location=New York |date=April 26, 1993 |access-date=October 10, 2008 }} Bain Capital in 1997 then sold the majority ownership of the chain to Donaldson, Lufkin & Jenrette.{{cite news |url=http://findarticles.com/p/articles/mi_m3374/is_n17_v19/ai_19938203 |title=Cuti leads Duane Reade in strong comeback |last=Parks |first=Liz |work=Drug Store News |location=New York |date=April 26, 1993 |access-date=October 10, 2008 }} Duane Reade completed its initial public offering (IPO) on February 10, 1998, trading on the New York Stock Exchange under the ticker symbol DRD.{{cite web |url=http://www.thestreet.com/story/12091/1/dows-rising-tide-lifts-ipos-boats.html |title=Dow's Rising Tide Lifts IPO's Boats |last=Wirth |first=Gregg |publisher=TheStreet.com, Inc |date=February 10, 1998 |access-date=October 10, 2008 }} On August 2, 2004, the company announced that it was acquired by Oak Hill Capital Partners and was again a private company.{{cite web |url=https://www.sec.gov/Archives/edgar/data/895364/000095014204002802/ex99-1form8k_080204.txt |title=Duane Reade Inc. to Go-Private Merger Consummated. |date=August 2, 2004 |access-date=October 10, 2008 }}
Gary Charboneau, the company's senior vice president of sales and marketing since 1993, explained his store layout strategy in New York magazine in 2005. He designed each store using four sections: one for beauty and cosmetic products, another that serves as a pharmacy, a third section for seasonal products such as cards and candy, and a fourth part for household and grocery items. Cosmetic items were placed near store entrances, pharmacy sections were moved to the rear of stores since—according to Charboneau—"people don’t browse for prescriptions", and the other two sections occupied the remaining space. Ian Mount wrote in the magazine article, "half of Duane Reade’s sales come from food, cosmetics, and the like."
Under CEO Anthony Cuti, who had been the president of Pathmark, the store expanded from 59 stores in 1996 to 249 stores in May 2005, with more stores in New York City than any other drugstore chain. In September 1998, Duane Reade acquired Rock Bottom Stores Inc, another drug retail chain with 38 retail stores, for $30 million plus an additional $31 million for the store's inventories.{{cite web|url=http://pdf.secdatabase.com/2990/0000950136-98-001726.pdf |title=Duane Reade Inc, Form 8-K, Current Report, Filing Date Sep 24, 1998 |publisher=secdatabase.com |access-date =May 12, 2018}}{{cite news |url=https://www.nytimes.com/1998/08/06/business/company-news-duane-reade-agrees-to-acquire-rock-bottom-stores.html |title=Company News; Duane Reade Agrees To Acquire Rock Bottom Stores |work=The New York Times |date=August 6, 1998 |access-date=October 11, 2008}} While sales for Duane Reade rose from $1.14 billion in 2001 fiscal year to $1.38 billion in 2003,{{cite web|url=http://edgar.secdatabase.com/778/104746904020679/filing-main.htm |title=Duane Reade Inc, Form 10-K/A, Filing Date Jun 16, 2004 |publisher=secdatabase.com |access-date =May 12, 2018}} the combined impact of union disputes, a local recession, and the destruction of their best-performing store in the September 11 attacks forced the company to slow its expansion from 30 new stores a year in 2001 and 2002 to no more than 17 a year in 2003 and 2004. Despite its expansion, the company had long-term debts of $405 million by October 2008, losing $33.1 million in the first half of that year.{{cite web |url=http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20081009/FREE/810099985/1061 |title=Two former Duane Reade executives indicted |last=Cordova |first=Elisabeth Butler |publisher=Crain Communications Inc. |location=New York |date=October 9, 2008 |access-date=October 11, 2008 }} Almost all of its stores are located in New York City or the immediate suburbs.
On April 19, 2006, it was announced that after nearly five years, Duane Reade agreed to settle with Disabled In Action to make all of its stores ADA compliant. According to the New York Daily News, Duane Reade estimated it would take two years to inspect and revamp its stores for wheelchair access. In November 2008, Duane Reade began rolling out a new logo.{{cite news | first1 = Sewell | last1 = Chan | first2 = Jennifer 8. | last2 = Lee | title = Jury Is Out on Duane Reade's New Look | date = 2009-01-02 | url = http://cityroom.blogs.nytimes.com/2009/01/02/jury-is-out-on-duane-reades-new-look/ | work = The New York Times | access-date = 2013-07-17}} In April 2009, Duane Reade hired DeVito/Verdi as its lead advertising agency.Ad week, [http://www.adweek.com/aw/content_display/news/account-activity/e3i877cb25050675ce93acd1214e0d8d8a3 "DeVito/Verdi Takes Duane Reade"], April 7, 2000, retrieved June 17, 2009
On April 9, 2010, Duane Reade was acquired by the Walgreen Company for $1.075 billion, consisting of $618 million in cash and $427 million of assumed debt.{{cite news|url=https://dealbook.nytimes.com/2010/02/17/walgreens-to-buy-duane-reade-for-1-1-billion/|title=Walgreen to Buy Duane Reade for $1.1 Billion|newspaper=The New York Times|date=February 17, 2010 |access-date=11 December 2014}} The transaction includes Duane Reade corporate office, 257 stores, and two distribution centers.{{cite web|url=http://edgar.secdatabase.com/2266/10420710000024/filing-main.htm |title=Walgreen Co, Form 8-K, Current Report, Filing Date Feb 18, 2010 |publisher=secdatabase.com |access-date =May 12, 2018}} On July 6, 2011, Duane Reade opened a location at 40 Wall Street in Lower Manhattan.{{Cite news|url=https://cityroom.blogs.nytimes.com/2011/07/05/at-duane-reades-newest-outpost-sushi-and-hairstyling/|title=At Duane Reade's Newest Outpost, Sushi and Hairstyling|last=Slotnik|first=Daniel E.|date=July 5, 2011|work=The New York Times|access-date=2018-01-08|language=en|url-access=subscription }}
File:Duane Reade (Pennsylvania Station - New York).jpg, June 2007]]
Litigation and disputes
Duane Reade and its executives have been involved in various disputes over its business practices with federal and local governments and labor unions.
Two unions and Duane Reade Inc. struck a deal on April 11, 2006, to close a five-year contract dispute. The three-year agreement covers "all of Duane Reade's clerks, cashiers, pharmacy clerks, pharmacy technicians, and photo technicians", and it closes a dispute dating from September 2001, when their previous contract expired. As part of the deal, Duane Reade and the unions settled all outstanding union and company claims before the National Labor Relations Board.{{cite news |url=http://findarticles.com/p/articles/mi_hb3007/is_8_28/ai_n29261075 |title=Labor dispute at Duane Reade finally comes to an end |work=Chain Drug Review |publisher=Racher Press, Inc. |location=New York |date=May 1, 2006 |access-date=October 10, 2008 }}
In November 1997, the company settled charges that it sold drugs and other products in its New Jersey stores that were expired or overpriced. It agreed to pay $200,000 in civil penalties, investigative costs, and fees and to comply with the state's laws and regulations but did not admit wrongdoing.
Its embattled CEO Anthony Cuti, along with former CFO William Tennant, were indicted on October 9, 2008, in Manhattan federal court for falsely reporting company income and conspiring to commit securities fraud from December 2000 to June 2005.{{cite web |title=Former Duane Reade Executives Accused Of Securities Fraud |url=http://www.wnbc.com/investigations/17681805/detail.html |last=Dienst |first=Jonathan |publisher=WNBC.com |date=October 9, 2008 |access-date=October 10, 2008 }} Cuti had already been replaced in November 2005 by industry veteran Richard Dreiling, COO of Longs Drugs stores based in the San Francisco area.{{cite web|url=http://sev.prnewswire.com/retail/20051121/NYM15521112005-1.html |archive-url=https://archive.today/20070419112943/http://sev.prnewswire.com/retail/20051121/NYM15521112005-1.html |url-status=dead |archive-date=April 19, 2007 |title=Richard Dreiling Appointed President and CEO of Duane Reade, Inc. |publisher=PR Newswire Association LLC. |location=New York |date=November 21, 2005 |access-date=October 10, 2008 }} In June 2010, Cuti and Tennant were convicted of securities fraud between November 2000 and June 2005. They faced up to 20 years in prison. Cuti was sentenced to three years in prison on November 15, 2010; Tennant was sentenced in September 2011 to time served, supervised release for three years, and a $10,000 fine.{{cite news |url=https://www.nytimes.com/2011/09/07/business/william-tennant-avoids-prison-in-duane-reade-fraud-case.html |title=William Tennant Avoids Prison in Duane Reade Fraud Case |agency=Reuters |date=September 7, 2011 |work=The New York Times}}{{cite news| url=http://www.huffingtonpost.com/2010/06/09/duane-reade-ceo-cfo-guilt_n_605729.html | work=Huffington Post | title=Duane Reade CEO, CFO Guilty: Anthony Cuti, William Tennant Convicted Of Fraud | date=June 9, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100612013529/http://www.huffingtonpost.com/2010/06/09/duane-reade-ceo-cfo-guilt_n_605729.html |archive-date=June 12, 2010}}
References
{{Reflist|colwidth=30em}}
External links
{{Portal|New York City|Companies|Medicine}}
{{Commons category|Duane Reade}}
- {{official website|http://www.duanereade.com}}
- [https://research.secdatabase.com/CIK/895364/Company-Name/DUANE-READE-INC Duane Reade Inc EDGAR Filing History]
{{Walgreens}}
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Category:Convenience stores of the United States
Category:Pharmacies of the United States
Category:Shops in New York City
Category:Companies based in Manhattan
Category:American companies established in 1960
Category:Retail companies established in 1960
Category:1960 establishments in New York City
Category:Companies formerly listed on the New York Stock Exchange
Category:Health care companies based in New York (state)
Category:Walgreens Boots Alliance
Category:1998 initial public offerings
Category:2004 mergers and acquisitions