Herbert Haft | |
|---|---|
 | |
| Born | (1920-08-24)August 24, 1920 Baltimore, Maryland, U.S. |
| Died | September 1, 2004(2004-09-01) (aged 84) Washington, D.C., U.S. |
| Occupation | Businessman |
| Spouse(s) | Gloria Haft (divorced) Myrna C. Ruben |
| Children | 3, includingRobert |
Herbert H. Haft (August 24, 1920 – September 1, 2004) was an American businessman who was famous first for the development ofdiscount stores in thedrug store,bookstore, andauto part businesses inWashington, D.C., and later as acorporate raider.
Haft was born to aJewish family inBaltimore,Maryland,[1][2] the son of an immigrantpharmacist from Russia.[2] His family moved toWashington D.C. where he graduated fromCentral High School.[1] He earned a B.S. in pharmacy fromGeorge Washington University.[1]
After school, Haft worked as a pharmacist at a local drug store.[1] In 1955, he and his wife, cosmetician Gloria Haft, opened the first drugdiscount store,Dart Drug in theAdams Morgan neighborhood ofWashington, D.C.[1] He quickly ran into problems as consumer goods wholesalers and pharmaceutical distributors refused to sell to him because his prices were lower than their other customers.[1] Haft unsuccessfully sued untilParke-Davis - at the time one of the largest pharmaceutical companies in the U.S. - was charged by the Justice Department withprice-fixing.[1] Haft was a lead witness in the case which was eventually won by the government.[1] The drug distributors - fearful of government action - returned to selling to Dart Drug and the business boomed.[1]
In the late 1970s, Haft's son Robert, a graduate ofHarvard Business School, joined the firm. Applying the same principle of mass retailing, the father and son team launchedCrown Books.[1] In 1984, he sold Dart Drug - then with 75 stores - for $160 million but retained control of the holding company, Dart Group.[1] He also founded (with family members)Trak Auto, Combined Properties,[3] and acquired part ofTotal Beverage andShoppers Food Warehouse.
Haft's Dart Group earned $250 million throughgreenmail and stock sales during unsuccessfultakeover attempts of retailersSafeway andStop & Shop. In the 1990s, he was involved in widely publicized conflict with his sons Ronald andRobert Haft, and wife Gloria Haft over control of the Dart Group, afamily business.
In a 1986 speech to a group ofGeorge Washington University alumni, Haft said that the secret of his success, was to borrow big: "If you owe someone several thousand dollars, you can't always sleep at night. If you owe someone several million dollars, the banker or supplier can't sleep. It's no use both of you worrying."
In 1998,Total Beverage was sold toTotal Wine & More and the remainder of Dart Group, except Crown Books, was purchased byRichfood, a grocery distributor for $200 million. Richfood quickly soldTrak Auto to a Tennessee investment group.Crown Books filed for bankruptcy, and limped along on private investment until its closure in 2001.
In 1999, Herbert Haft launchedHealthQuick, an online pharmacy, while his son Robert launchedVitamins.com. HealthQuick failed by 2001.
He was married to Gloria Haft for 45 years before divorcing; they had three children:Robert Haft, Ronald Haft, and Linda Haft.[1] Haft was a member ofWashington Hebrew Congregation.[1] He and his family were engaged in a long-standing and bitter feud[4] that culminated in his deathbed marriage to Myrna C. Ruben and the exclusion of his children from his will.[5]
Herbert Haft died from heart disease on September 1, 2004, at a Washington D.C. hospital.[6]