Case 1.5
The Leslie Fay Companies
Discussion
The Leslie Fay Company, located in New York, was a clothing manufacture company
founded by a man named Fred Pomerantz. During World War II, Pomarantz served his
country by making uniforms for the Women’s Army Corp. After the war, he used his
skills and created a company that would manufacture reasonably priced and stylish
dresses for women between the ages of 30 and 55. He named the company after his
daughter, Leslie Fay.
The Leslie Fay Company quickly became a key player in a market of high competition
and the ever so changing fashion trends. The key focus for the company at this time was
department stores in metropolitan areas. At the time, Leslie Fay’s principal competitors
included Donna Karan, Oscar de la Renta, Nichole Miller, Jones New York, and Albert
Nipon (Knapp 2013). Liz Claiborne was the only clothing manufacturer with sales
revenue larger than Leslie Fay.
Fred Pomerantz lived a very glamorous life. He loved gambling. He was known to
throw huge parties and often bragged of his war scars he had after fights he
encountered while traveling through some of the tough neighborhoods of New York.
He was also known for driving a lipstick-red Rolls Royce down the streets of
Manhattan.
After Fred Pomerantz died in 1982, John Pomerantz took over as CEO and chairman of
the board. John lived the same lavish life as his father. With an inheritance of $40