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Wikimedia Commons. As of , Spiegel sells women's style and fashion products, and is owned by Lynn Tilton , through her company Patriarch Partners.
For the first years of its history, Spiegel was primarily a family business. After spending the final few months of the Civil War in a Confederate prison camp, Joseph Spiegel settled in Chicago, where his brother-in-law, Henry Liebenstein, ran a furniture business.
With Liebenstein's assistance, Joseph Spiegel opened J. Spiegel and Company, a small home furnishings retail operation located on Wabash Avenue in Chicago 's loop.
In , however, the Great Chicago Fire destroyed most of the area's business district, including the Spiegel store.
After the fire, Joseph Spiegel and a partner named Jacob Cahn rebuilt the business, and by the company was prospering again under the leadership of the two men.
Cahn retired from the business in In Spiegel began running regular advertisements in several Chicago newspapers, and the following year the company moved to a larger building on State Street.
Joseph Spiegel's two oldest sons, Modie Spiegel  and Sidney Spiegel, were brought into the business during this time.
Spiegel issued its first catalogs in The catalogs were made available to potential customers who lived outside the city.
Because a mail order system did not yet exist, the catalogs served instead to lure people into the downtown store. By , however, the business had taken a turn for the worse, as many customers were slow to pay for their purchases.
With debts mounting, the company went bankrupt. The principal difference was that the new company, like many others in the furniture business, sold on credit.
The decision to offer installment plans, and the timing of the decision, made possible Spiegel's expansion over the next several decades. The new Spiegel was more successful, and in a branch store was opened on Chicago's South Side.
Another South Side branch went into operation three years later. The company's slogan — "We Trust the People! In Joseph Spiegel's third son, Arthur , entered the business with a plan to develop mail order operations for Spiegel.
After a couple years of lobbying, Arthur convinced the company hierarchy to open a mail order department, and in Spiegel became the first company to offer credit through the mail.
The new service was reflected by the addition of a word to the company motto, which began to read: "We Trust the People--Everywhere!
Spiegel was the only company at that time that did not charge for credit. They continued this "no charge for credit" policy for another 50 years.
To handle the overwhelming success of the mail order operation, a new company — Spiegel, May, Stern, and Company — was formed, allowing the Spiegel House Furnishings Company to devote its limited resources to conventional retailing, rather than assume the debts associated with building up the mail order segment.
Arthur was named President of the new company. In Spiegel introduced the teddy bear to the American consumer, for the first time nationwide, by offering it in its mail order catalog.
The Ideal Toy Company partnered with Spiegel to launch this successful toy venture, and Spiegel continues to give its staff teddy bears to mark the company anniversary every year.
Spiegel boldly began to diversify its line of products after , offering apparel for the first time in After a couple of unsuccessful partnerships with independent clothing manufacturers, Spiegel, May, Stern and Company began offering its own line of women's apparel.
The "Martha Lane Adams" line—named after its fictional designer—was so successful that it quickly became a wholly owned subsidiary of Spiegel, May, Stern, and Company and earned its own catalog.
That same year, Arthur Spiegel died of pneumonia at the young age of Spiegel's next marketing breakthrough came in , when company executive Ed Swikard introduced a promotional idea involving Congoleum floor covering.
Swikard engineered a mailing to more than nine million residences, offering a pre-cut Congoleum package at a low cost.
The Great Depression had a negative impact on Spiegel's business. In , Spiegel's stock dropped to its lowest price of 7 cents.
The following year, the Spiegels began gradually liquidating their retail furniture business. By the last Spiegel furniture store in Chicago closed its doors.
After experiencing considerable economic losses in the early years of the Depression, Spiegel entered a period of growth and profits beginning in During this time, M.
Spiegel, son of Modie, took over the leadership of the company. When sales began to level off in , Spiegel reacted by shifting its attention to consumers in a higher income bracket.
The company began adding dozens of brand names with national reputations to its catalog. The new approach was referred to as the "quality concept," and it brought success.
As much manufacturing had been shifted to wartime production, many of the products that were popular catalog items were no longer available in large quantities.
Moreover, a shortage of labor affected the company's operations, and when buying on credit was officially discouraged by the US government, Spiegel management had to discard its "No Charge for Credit" policy.
That year, Spiegel acquired 46 Sally dress shops in Illinois. Several other chains were purchased over the next few years, and by Spiegel was operating retail stores featuring a wide range of merchandise, including clothing, furniture, and auto supplies.
After an initial success in retail, the costs of retail operations began to outweigh the benefits.
By the mids, Spiegel was again concentrating on its former mainstay, mail order sales on credit. Although nearly all of the company's retail outlets were sold off by , several catalog shopping centers were retained so that customers could ask questions and place orders with company representatives.
The idea was to add as many names as possible to the Spiegel customer list. The company also began to include a widening range of products in its catalogs.
In addition, Spiegel was selling pets. In , after a century of operation as a family business, Spiegel was purchased by Beneficial Finance Company.
Spiegel stockholders received shares of Beneficial stock, and Spiegel became a wholly owned subsidiary of Beneficial.
Spiegel benefited from television exposure and advertising in the form of prizes given away on several game shows, most notably The Hollywood Squares and Let's Make a Deal.
Announcers emphasized Spiegel's large catalog offerings in on-air promotional announcements and included Spiegel's Chicago zip code, Often these programs would award contestants gift certificates of a certain dollar amount toward catalog items, giving winners the flexibility to choose their own prize.
During the early s, several charges were leveled against Spiegel by the Federal Trade Commission FTC regarding some of the company's marketing tactics.
In , the FTC accused Spiegel of failing to adequately disclose credit terms in some of its statements and catalog ads. The company also was cited for its handling of credit life insurance policies, as well as for offering free home trials without informing customers that credit approval was required before a product would be shipped.
Most of the complaints brought by FTC during this period were settled by changes in company practices, and serious action by the government was generally avoided.
Rising interest rates in the mids made financing credit accounts costly. Also during that time, Spiegel began to feel the pressure of competition from discount stores such as Kmart , which were rapidly establishing a national presence.
In , to help turn the company around, Beneficial hired Henry "Hank" Johnson, a veteran of the mail order operations of Montgomery Ward and Avon.
One of Johnson's first moves was to streamline company management. Dozens of executives were let go, and overall employment was cut in half over the next five years, from 7, in to 3, in Johnson also closed Spiegel's remaining catalog stores.
Johnson changed Spiegel's image to that of a "fine department store in print. Merchandise bearing designer labels began appearing in , when the company introduced a line of Gloria Vanderbilt products.
Spiegel soon became a trendsetter in the catalog business, which was booming as a whole during the early s. The company's sales grew at an impressive pace of 25 to 30 percent a year.
Although Spiegel still ranked fourth in catalog sales during this time, trailing Sears , J. Penney , and Montgomery Ward , the company's strategies were being followed closely by its larger competitors.
Under its new ownership, Spiegel's transformation into an outlet for higher-end products continued. In Spiegel began distributing specialty catalogs in addition to its four primary catalogs; 25 of these specialty catalogs were in circulation by , featuring Italian imports, plus-sized clothing, and other specialty items.
In six million shares of nonvoting stock was sold to the public, marking the first time since that Spiegel was not completely privately held.
In the first year following the acquisition, the chain was expanded from 60 to 99 stores.
By Spiegel had become the number three catalog retailer in the United States, with a total circulation of about million catalogs, including 60 different specialty catalogs, and an active customer base of five million.
The company began to expand its retail outlet operations based on lines from its catalogs. In spite of these innovations, the company's growth stagnated due to the national economic recession, and earnings declined sharply in Eddie Bauer performed particularly well, having grown to stores.
In August Spiegel announced its purchase of Newport News formerly Avon Fashions , a catalog company specializing in moderately priced women's clothing.
Later that year, Spiegel unveiled a new specialty catalog, E Style, featuring a clothing line aimed at African-American women.
That same year, Sears discontinued its Big Book catalog sales operation and Spiegel and other specialty catalog retailers scurried to pick up the leftovers and increase their own share of the market.