Crazy Eddie
CASE 1.8
Crazy Eddie, Inc.
In 1969,Eddie Antar, a 21-year-old high school dropout from Brooklyn, opened a consumer electronics store with 150square feet of floor space in New York City 1 Despite this modest beginning, Antar would eventually dominate the retail consumer electronics market in the New York City metropolitan area. By 1987,Antar's firm, Crazy Eddie, Inc., had 43 retail outlets, sales exceeding $350 million, and outstanding stock with a collective market value of $600 million. Antar personally realized more than $70 million from the sale of Crazy Eddie stock during his tenure as the company's chief executive. A classic rags-to-riches story became a spectacular business failure in the late 1980s when Crazy Eddie collapsed following allegations of extensive financial . wrongdoing by Antar and his associates. Shortly after a hostile takeover of the company in November 1987,the firm's new owners discovered that Crazy Eddie's inventory was overstated by more than $65 million. This inventory shortage had been concealed from the public in registration statements filed with the Securities and Exchange Commission (SEC). Subsequent investigations by regulatory authorities revealed that Eddie Antar and his subordinates had grossly overstated Crazy Eddie's reported profits throughout its existence.2
Eddie Antar: The Man Behind the Legend
Eddie Antar was born into a large, closely knit Syrian family in 1947.After dropping out of high school at the age of 16,Antar began peddling television sets in his Brooklyn neighborhood. Within a few years, Antar and one of his cousins scraped together enough cash to open an electronics store near Coney Island. It was at this tiny store that Antar acquired the nickname "Crazy Eddie:' When a customer attempted to leave the store empty-handed, Antar would block the store's exit, sometimes locking the door until the individual agreed to buy something-anything. To entice a reluctant customer to make a purchase, Antar first
Crazy Eddie, Inc.
In 1969,Eddie Antar, a 21-year-old high school dropout from Brooklyn, opened a consumer electronics store with 150square feet of floor space in New York City 1 Despite this modest beginning, Antar would eventually dominate the retail consumer electronics market in the New York City metropolitan area. By 1987,Antar's firm, Crazy Eddie, Inc., had 43 retail outlets, sales exceeding $350 million, and outstanding stock with a collective market value of $600 million. Antar personally realized more than $70 million from the sale of Crazy Eddie stock during his tenure as the company's chief executive. A classic rags-to-riches story became a spectacular business failure in the late 1980s when Crazy Eddie collapsed following allegations of extensive financial . wrongdoing by Antar and his associates. Shortly after a hostile takeover of the company in November 1987,the firm's new owners discovered that Crazy Eddie's inventory was overstated by more than $65 million. This inventory shortage had been concealed from the public in registration statements filed with the Securities and Exchange Commission (SEC). Subsequent investigations by regulatory authorities revealed that Eddie Antar and his subordinates had grossly overstated Crazy Eddie's reported profits throughout its existence.2
Eddie Antar: The Man Behind the Legend
Eddie Antar was born into a large, closely knit Syrian family in 1947.After dropping out of high school at the age of 16,Antar began peddling television sets in his Brooklyn neighborhood. Within a few years, Antar and one of his cousins scraped together enough cash to open an electronics store near Coney Island. It was at this tiny store that Antar acquired the nickname "Crazy Eddie:' When a customer attempted to leave the store empty-handed, Antar would block the store's exit, sometimes locking the door until the individual agreed to buy something-anything. To entice a reluctant customer to make a purchase, Antar first