When I started this blog, I said that it didn't really matter if anybody read it. That is still true...I am writing as an outlet and if one day my grandchildren want to know more about their Saba, then they will have the opportunity to read the collective writings.
When we sold The Sports Authority to Kmart in 1990, I said that one day I would write a book about the "real story." In fact, at the closing dinner, one of our partners signed a memento of the event to me with "to Roy, who knows the real story." So, this is the first installment of The Real Story....for no other reason than sometimes the real story is a lot more interesting than the myth that has been perpetuated for 25 years!
The year is 1985...As a young (34 years old) executive with Child World Stores, I had just been promoted to Vice President and General Merchandise Manager when I got a call from a Headhunter. It seems that there was a group of grocery executives that were putting together a team to start-up a new retail chain, backed by several prominent venture capital funds. Since they wanted me to interview for the Chief Merchant position, I was curious to get more details. "They endeavor to start a chain of Office Supply superstores...a virtual grocery store of office supplies!" Being the self-proclaimed retail expert that I envisioned of myself, I declined to even be interviewed because I couldn't imagine how a superstore could possibly do enough business in paper clips, legal pads and pens and pencils to be successful. Not one of my more brilliant assessments as the chain turned out to be Staples...one of the most successful superstore chain start-ups of the 80's.
Fast forward a year or so and in a conversation with an old friend and former supplier from my days at Richway Stores, I learned of "a group of retailers and VC's" that were putting together plans for a Sporting Goods Superstore concept and their search for a chief merchant. No sooner did Jory get the words out of his mouth that I jumped all over the opportunity to interview. (I try to never make the same mistake twice!). Jory put me in touch with Bob Mead and Chet Howard, the 2 executives working full time on Warehouse of Sports in South Florida. Since I had already scheduled vacation with the family at Disney World, a quick 1 day trip to West Palm Beach would be easy.
The trip to meet Bob and Chet confirmed my suspicions...that Jory, his Dad and Uncles were the impetus behind the idea and had assembled the Venture Capital groups and seed money to get the project rolling. But their involvement had to be kept quiet because their family business, Maurice Sporting Goods, was the supplier of Fishing and Hunting gear for the biggest chains in Retail...they couldn't be seen as competitors to their customers. I loved the concept but had reservations about the leadership...Bob seemed to be way behind the times, a retail relic, and I doubted his leadership ability. BUT, I loved the opportunity. Always a risk taker, I forged ahead.......
Next, were meetings with the perspective Venture Capital partners...Scott Meadow of William Blair, Bill Hunkler of First Chicago, Don Phillips and Cece Smith of Phillips-Smith, Chip Ruth of Marquette and Mitt Romney (yes, THAT Mitt Romney) of Bain Capital. I hit it off with several of them...especially those with a retail background and I got locked in as the newest member of the Executive Team.
As the project progressed, I had the opportunity to add input to the Business Plan and overall Merchandising, Marketing and Operations strategy. My experience in Big Box Retail served the team well. And then, I got blindsided!!!
It seems that in checking me out, Scott Meadow of William Blair sought input from the analyst that covered the Toy Industry for Blair....sensing an opportunity to get sales info from Child World during the Christmas Season (normally an info blackout period), this analyst traded the info that I was working with this Sporting Goods group with the CEO of Child World for sales information! So, I was confronted by my boss and decided to come clean...yes, I was entertaining the opportunity but that the New Company was not yet a reality and might not even happen. I also confided that there was a New Year's Eve meeting in Chicago that will help decide if the project would even get off the ground. In this case, honesty worked...my boss gave me the room to "figure it out" but let me know that he didn't want me to leave.
In my next post...the New Year's Eve Meeting, I drop out of the project, the deal falls apart and gets resurrected!
And The Journey continues...................................
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