New owner for Forman Mills averts layoffs at South Jersey store
PENNSAUKEN – A New York firm has acquired Forman Mills, a locally based discount chain that traces its roots to a 1970s-era flea market.
The buyer, Shoppers World, plans to operate all Forman Mills locations, said Sam A. Dushey, CEO of the purchasing firm.
He noted the purchase, made for an undisclosed amount, will more than double the parent company's store count.
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Shoppers World sells casual and dress wear for men, women and children at 40 locations in 19 states.
Forman Mills has 43 stores in nine states.
The announcement came five days after Forman Mills filed notices with New Jersey’s Department of Labor, warning of possible layoffs for 118 workers at its headquarters and 18 employees at its Route 130 store.
Forman Mills warned of potential bankruptcy action
In the notices, Forman MIlls Holdings LLC said it was trying to sell its business "as a going concern," but that a failure to do so would likely lead to bankruptcy protection.
The notices said the reason for layoffs would be "termination of operations.
Information distributed to Forman Mills workers about potential job cuts cited “economic circumstances and operational needs of the business.”
No layoffs are now expected at the Route 130 store in Pennsauken, a company representative said Monday.
Information was not available about the outlook for staffers at the Busch Memorial Highway headquarters, also in Pennsauken.
The transaction will bring benefits to both parties, predicted Mike Kvitko, CEO of Forman Mills.
“We’re pleased to be joining a company with such longevity, strong community roots and financial stability," he said.
Each firm operates in New Jersey, Pennsylvania, New York, Maryland, Ohio, Illinois and Michigan.
Shoppers World, which previously had no South Jersey presence, also has stores in Connecticut, Indiana, Virginia, Georgia, Nevada and Texas.
The business was founded in Baltimore in the 1930s, opened a Brooklyn store in the 1950s and took its current name with expansion to a North Jersey location in 1972.
Forman Mills has more South Jersey outlets in Deptford, Egg Harbor and Vineland, as well as two sites in Northeast Philadelphia, according to its website.
It also operates in Delaware and Wisconsin, and plans to add two stores in Chicago and West Philadelphia, according to a statement released Monday.
The discount chain, founded by Richard Forman and known for its bright yellow stores, was acquired in 2016 by a New York-based equity firm, Goode Partners LLC. Forman Mills at that time had 36 stores.
Discount chain began at a flea market
The business traces its roots to 1977 when Forman, with an $80 loan from his father, began selling clothing at local flea markets.
The first store opened in 1981, combining an outdoor flea market with an adjacent indoor shop, according to a history at the company’s website.
Forman opened a 16,000-square-foot “warehouse superstore” in South Philadelphia in 1985, then expanded to South Jersey and other states.
Jim Walsh is a senior reporter with the Courier-Post, Burlington County Times and The Daily Journal. Email him at jwalsh@cpsj.com.
This article originally appeared on Cherry Hill Courier-Post: Shoppers World buys Forman Mills, averts layoffs at Pennsauken store
