Richard A. Smith | |
---|---|
Born | Richard Alan Smith November 1, 1924 New York City, U.S. |
Died | September 9, 2020 | (aged 95)
Occupation | Businessman |
Known for | CEO of General Cinema Corporation |
Spouse | Susan Flax |
Children | 4 |
Parent | Philip Smith |
Relatives | Jeffrey Lurie (nephew) |
Richard Alan Smith (November 1, 1924 – September 9, 2020) was an American businessman who was CEO of General Cinema Corporation.
Smith was born in 1924 [1] the son of Philip Smith. His father founded Midwest Drive-In Theaters which in 1941, operated 9 of 15 drive-in movie theaters in the U.S. [2] In 1946, he joined his father's company. [2] In 1947, the company was one of the first to open a theater in a shopping mall in Framingham, Massachusetts. [2] By the 1950s, the Midwest Drive-In Theatres operated 53 drive-ins [3] and branched out into other lines of business including the Richard's Drive-Ins restaurant chain, Amy Joe's Pancake Houses, and several bowling alleys in order to diversify their revenues which were under pressure as more people stayed home to watch television. [3] In 1960, the company changed its name to General Drive-In Corp and went public on the New York Stock Exchange [2] although Smith retained a controlling interest. [4] His father died in 1961 and Richard succeeded him as CEO. [4] [2] Smith changed the company's name to General Cinema in 1964 to better reflect the shift in the industry away from drive-in theaters. [2]
Smith diversified and expanded the company through acquisitions. [4] In the late 1960s, General Cinema began purchasing bottling franchises eventually becoming the largest independent bottler in the United States. [4] In 1970, they purchased the Mann Theatres chain (founded by Ted Mann) for $6.6 million. [4] In 1972, they purchased an interest in 47 indoor theaters in Louisiana and Florida from the Loews Corporation (founded by Laurence Tisch and Robert Tisch) for $16 million. [4] Smith's diversification efforts paid off: in 1985, the bottling operations were 70% of operating profits and General Cinema marked its 12th straight year of operating profits (since Smith was appointed CEO, General Cinema had been profitable for 24 of 25 years). [4] Smith also participated in greenmailing: he purchased a substantial interest in Heublein Inc. forcing it to find a friendly suitor earning Smith a substantial profit when he sold his shares. [4]
In 1984, General Cinema purchased a controlling interest in Carter Hawley Hale, the tenth largest clothing retailer in the United States and owner of the Bergdorf Goodman, Neiman-Marcus, John Wanamaker's, Thalhimers, and Holt Renfrew chains, [4] saving it from a hostile takeover from Leslie Wexner. [1] In 1989, General Cinema sold its bottling division for $1.75 billion. [4] In 1991, General Cinema purchased Harcourt Brace Jovanovich for $1.5 billion. [4] In 1993, the company split into two companies: Harcourt General consisted of the publishing business and the controlling interest in the retail group (then called the Neiman-Marcus Group); and GC Companies, Inc. consisted of the movie theater division in which the Smith family retained a 28 percent controlling interest. [4] In 1994, Smith re-evaluated the portfolio of theaters and sold 14 theaters for $14 million and closed an additional 37 theaters in 1994 and 12 in 1995. [4] They also cautiously expanded into megaplexes with sit-down cafes, seat-side service, "loveseats," gourmet food and coffee, and liquor; and associated with top brands such as Starbucks, Pepsi, Taco Bell, and Pizzeria Uno. [4]
In 2000, General Cinema sold Harcourt General to publisher Reed-Elsevier for $5.7 billion and in 2005, they sold Neiman Marcus to private equity firms TPG and Warburg Pincus for $5.1 billion (the Smith family earned $600 million from their interest). [5]
He and his wife founded the Richard and Susan Smith Family Foundation. [6] Since 1973, the foundation has donated $45.6 million to Boston's Jewish community of which $24 million was given to Combined Jewish Philanthropies of Boston (CJP). [7]
In 1952, Smith married Susan Flax who was Jewish. [6] [8] They had four children: James Smith (who died in 1970), Amy Smith Berylson, Robert Smith, and Debra Smith Knez. [6] His daughter is married to Brian Knez. [9] [10] His son, Robert Smith and son-in-law Brian Knez, were co-CEOs of Harcourt General until its sale then co-founded private equity shop Castanea Partners in 2001. [5] His nephew is Jeffrey Lurie; in 1994, he and his sister provided collateral for a $185 million loan enabling Jeff to purchase the Philadelphia Eagles. [5]
Smith died on September 9, 2020, aged 95. [11]
"Because of our Jewish heritage," Smith said in a letter to his descendants, "we expect Combined Jewish Philanthropies, or another appropriate Jewish philanthropic vehicle, to be a permanent core part of the Foundation's giving."