Ep 1: Rebuilding After Bankruptcy

Rally

Behind most bankruptcies is an exhausted CEO. Around 3 a.m. on Wednesday, Dec. 14, 2016, Rob Morrison, the CEO of New York City retailer Gracious Home was signing and sending bankruptcy documents to his attorneys. They filed for Gracious Home’s (second) bankruptcy in the middle of the night so Rob would have time to break the news to his staff before reporters started calling asking for a comment. On this episode of Rally, a podcast about business leaders facing failure and bouncing back, a retail CEO takes us behind the scenes of a Chapter 11 bankruptcy filing at a time when thousands of stores were closing around the country. Gracious Home was founded in 1963 by a pair of brothers, who established the brand as a sort of precursor to e-commerce giant Amazon. New Yorkers of a certain age knew, “you could always get it at Gracious Home,” regardless of whether you were looking for a crystal chandelier or a vacuum cleaner bag. The business grew and expanded until after the 2008 financial crisis, when the owners took out a loan to open another store at one of the worst times. Gracious Home filed for bankruptcy protection its first time in 2010. New owners came in, hoping to turn things around. In 2014, they hired Rob, who’d spent his entire career climbing corporate ladders at retail companies. He began as its Chief Operating Officer. In 2016, Gracious Home’s CEO left suddenly and Rob was thrust into his first ever CEO post. Weeks later, Rob took Gracious Home through its second bankruptcy filing. Rob tells the story of what happens when a retailer files for bankruptcy, including: closing stores, firing hundreds of employees and coming up with a plan to revive a brand beloved by many. Business reporter and Rally host Macaela J. Bennett has spent a year collecting these stories of hardship and missteps in people’s careers to share with listeners inspiring examples of overcoming obstacles. Follow Rally_Podcast: Twitter | Facebook | Instagram Email: [e-mail] Media: Inspire Me by PianoPassion A segment of “Room with a view” by Jahzzar is licensed under CC BY 3.0 Growing Toward the Sun by Larry Bryant Don't Leave Me by Marcin Gasiewicz Reflecting Emotional Piano and Strings Midtempo by Jason Garner Change the World by mitja mithans Memento by Dmitry Vitkov Sweet Emotional Piano String Instrumental Midtempo by Jason Garner Wings of Hope by Mykola Odnorog Links: + “A Store Thrives Selling Whatever It Is You Have to Have” https://www.nytimes.com/1993/02/11/garden/a-store-thrives-selling-whatever-it-is-you-have-to-have.html + “Gracious Home files bankruptcy amid NYC job losses” https://www.reuters.com/article/gracioushome-bankruptcy-idUSN1321297620100813 + “Former Wal-Mart Executive Buys Stake in Hardware Store Gracious Home” https://www.wsj.com/articles/former-wal-mart-executive-buys-stake-in-hardware-store-gracious-home-1434581436 + “Manhattan Housewares Chain Gracious Home Files for Chapter 11” https://www.wsj.com/articles/manhattan-housewares-chain-gracious-home-files-for-chapter-11-1481918392 + “New York Housewares Retailer Gracious Home Seeks Rebirth” https://www.wsj.com/articles/new-york-housewares-retailer-gracious-home-seeks-rebirth-1485981420 + “Greenwich resident tries to beat dim retail odds” https://www.greenwichtime.com/business/article/Gracious-Home-Greenwich-resident-tries-to-beat-11141713.php + “Gracious Home Exiting Bankruptcy With $4M Investment” https://commercialobserver.com/2017/06/gracious-home-exiting-bankruptcy-with-sale-to-lumber-liquidators-founder/ +Prime Clerk Gracious Home filing, https://cases.primeclerk.com/GraciousHome/Home-Index