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Changing Hawaii
EVERY resident of Hawaii, at least once in a lifetime of shopping expeditions, has bought something at Liberty House. It's mandated somewhere in the state Constitution, I believe, or maybe it merely seems that way. LH emerges from
long bankruptcyAs a teen, I remember purchasing trendy clothes and costume jewelry at the Ala Moana flagship.
As a young woman entering the workforce, my first dark-blue power suit from the Pearlridge location won me a very nice pay raise.
And, as a much-too-busy, middle-aged working mom and chief bargain-hunter for the clan, I often obtain presents from LH since recipients aren't hassled if the gifts are exchanged.
Thus it was extremely traumatic for me and the entire state when, on March 19, 1998, the front-page headlines proclaimed: "Liberty House files bankruptcy."
What? Whoa! The state's oldest and biggest department store chain asking for Chapter 11 reorganization and protection from creditors? Unbelievable.
But true. The news was like a sucker-punch to the community, already reeling from a decade of recession while the mainland was making merry.
Big-time downsizing hit the island chain, with 12 LH outlets closed down, leaving 18 department stores and smaller shops. The work force was slashed by 1,300, resulting in a leaner cadre of 3,000 employees and managers.
Fate didn't make it any easier for them, that's for sure.
Adding to their woes were increased competition from mainland retailers; fewer high-spending tourists, especially from Japan; and a battle embroiling the company's owner, landlord and creditors.
In the end, nobody would have guessed it would take three long years and millions in legal fees before LH could celebrate its resurrection.
Undoubtedly, no one is happier about that than President John Monahan. You could almost feel the burden lift from his sagging shoulders last week, when he told the Star-Bulletin, "The plan of reorganization is effective today. I signed the papers five minutes ago."
AFTER suffering the stigma of bankruptcy since 1998, Liberty House commemorated its new lease on retailing life by taking out a full page ad in yesterday's newspaper.
Perhaps taking a cue from Hawaii's large Asian population, the sentiment behind the text was more grateful and gracious than gloating in nature.
It read: "It's easy to take the days for granted. It's easier said than done to make every day count. The past three years have taught us that.
"Through it all, what gave us hope and constant inspiration were our customers, whose loyalty and support never wavered, and our employees, who showed the depth of their commitment day after day.
"We've emerged from our greatest challenge, humbled but renewed, thankful to continue what we began 151 years ago.
"A bright new era has begun...We see each day in a new light. Every day is a gift, a test, a chance to start again. Mahalo nui loa. We couldn't have done it without you. (Signed) Liberty House. A Tradition Of Aloha."
OK, everybody. Put on your most comfortable shoes, grab that credit card and get ready for those annual spring sales. Let's go shopping!
Diane Yukihiro Chang's column runs Monday and Friday.
She can be reached by phone at 525-8607, via e-mail at
dchang@starbulletin.com, or by fax at 523-7863.