Dart Drug

For Dart Industries, the conglomerate which owned the Rexall Drug Company, see Justin Whitlock Dart Sr.
A Dart Drug store on Eleventh Street in Washington D.C.

Dart Drug was a chain of discount drug stores in the metropolitan Washington, DC region. It expanded to over 70 stores, and became a vehicle (as Dart Group) by which Herbert Haft engaged in greenmail activities against other public companies.

It spun off Trak Auto and Crown Books. Dart Drug was sold to a management group in 1984, bought by Bud Fantle in 1987 and renamed Fantle's. The chain entered bankruptcy in 1989, and was eventually dissolved in 1990. The leases for Fantle's stores were acquired by competitors.

The store's logo depicted a multicolored bullseye design with a triangular "dart" overlaid.

History

Dart Drug was founded in 1954, by Herbert Haft and his wife Gloria in Adams Morgan. Haft found success offering most of his inventory below the manufacturer's suggested retail price, which was illegal for items covered by fair trade laws at the time. Despite the popularity of Dart Drug with customers, Haft faced hundreds of lawsuits from pharmaceutical and supply companies, including Parke-Davis, Squibb, Max Factor, and Revlon.[1] By 1960, the United States Supreme Court ruled against fixing wholesale pricing, paving the way for growth in the discounting business.[2] Dart Drug, with 10 stores at the time, incorporated and went public that year.[3][4] By the end of the decade, Haft began running his company more like a private business than a publicly traded company. In the years that followed, his propensity for secrecy brought both increased attention and ire.[1]

During the 1970s, the company introduced the Super Dart format, which were 20,000 square feet filled with hardware, lumber, and beer, alongside more traditional health and beauty products, and drugs. Haft's real estate arm, Combined Properties Limited Partnership, went public in 1972.[1] In 1977, Haft's son, Robert Haft, joined the company and started Crown Books, a discount bookseller. The Hafts also started Trak Auto, an auto parts discounter, in 1979.[3][4]

In 1982, Robert was named president and chief operating officer of Dart Group at the age of 29. Herbert was named chairman and remained chief executive.[5] It sold 50% interest of Crown Books to Thrifty Corporation in 1982 and a minority interest in Trak Auto in 1983.[6] By 1984, the Hafts sold its 73-store Dart Drug chain to a management group for $160 million.[7] Between bonuses and stock options, the sale made Herbert and Robert the fifth- and seventh-highest paid executives in the country that year.[1]

Dart Drug went public in July 1987, with Sheldon Fantle, former owner of Lane Drug and Peoples Drug, taking control of the company.[8][9] In April 1989, the chain's 69 drugstores in Washington, D.C., Maryland, and Virginia were renamed to Fantle's Drugstore.[10] However, the company filed for bankruptcy that August and announced a liquidation a year later.[11][12]

Using the funds from the sale of Dart Drug and junk bonds, the Hafts began mounting takeover bids for May Department Stores, Eckerd, Beatrice Companies., Federated Department Stores, Stop & Shop, Safeway, Supermarkets General, and the Dayton Hudson Corporation throughout the 1980s.[1][13][14] After acquiring stakes in these companies, Dart Group would then sell its shares back to them at a premium. By 1987, both Trak Auto and Crown Books had over 200 locations.[1] In October 1992, Dart Group started Total Beverage, a beer-and-wine discount retailer.[3][15]

However, by the early 1990s, Herbert Haft's tactics were believed to be dragging down the company's value. Dart Drug settled an investigation by the SEC into whether the company was operating more like an investment firm than a corporation. At this time, Robert Haft asked his father to give him control of the company. In response, he fired his son, wife, daughter, and the board of directors. His son Ronald took Robert's place in the company. After a high-profile divorce and numerous legal battles, Dart Group's finances plummeted and Ronald accused his father of using the company's resources to pay for the wrongful termination settlements.[3][14][16]

In 1994, an executive committee made up of outside directors was established and given full control of the company during the course of the Haft family litigations.[3] Separately, Haft was also removed as chairman of Consolidated Properties, which filed for bankruptcy the following year.[16][17]

By 1996, the company operated 276 Trak Auto stores, 172 Crown Books locations, four Total Beverage superstores, and 34 Shoppers Food Warehouse grocery stores.[3]

References

  1. ^ a b c d e f "WASHINGTON RAIDERS: Herbert and Robert Haft; The Dynasty Behind Dart's Expanding Empire". The New York Times. 1987-01-25. Retrieved 2025-08-19.
  2. ^ Sullivan, Patricia (September 3, 2004). "Discount Retailing Giant Stoked Bitter Family Feud". The Washington Post. Retrieved 2025-08-19.
  3. ^ a b c d e f International Directory of Company Histories Vol.16. Detroit ; London: St. James Press. 1997. pp. 159–162. ISBN 978-1-55862-219-7 – via The Internet Archive.
  4. ^ a b "Herbert Haft, Founder of Discount Drugstores, Dies at 84". The New York Times. 2004-09-04. Retrieved 2025-08-19.
  5. ^ "Robert M. Haft Succeeds Father as Head of Dart". The Washington Post. 1982-10-01. ISSN 0190-8286. Retrieved 2025-08-19.
  6. ^ Vartan, Vartanig G. (July 21, 1983). "Market Place; Price Swings in Dart Drug". The New York Times. Retrieved 2025-08-19.
  7. ^ "Dart Drug Gets Bid For 73 Pharmacies". The New York Times. 1984-04-24. Retrieved 2025-08-19.
  8. ^ Daniel F., Cuff (November 3, 1987). "BUSINESS PEOPLE; Former Head of Peoples Will Lead Dart Drug". The New York Times. Retrieved 2025-08-19.
  9. ^ Meyer, Caroline E. (1987-11-03). "EX-PEOPLES CHAIRMAN TO TAKE OVER DART DRUG". The Washington Post. ISSN 0190-8286. Retrieved 2025-08-20.
  10. ^ Brezina, Carlos (March 28, 1989). "Dart Drug changes name, is sued by Labor Department - UPI Archives". UPI. Retrieved 2025-08-19.
  11. ^ "Dart Drug Files For Chapter 11". The New York Times. 1989-08-10. Retrieved 2025-08-19.
  12. ^ "COMPANY NEWS; Dart Drug Stores Set to Liquidate". The New York Times. 1990-08-18. Retrieved 2025-08-19.
  13. ^ Cole, Robert J. (September 18, 1987). "Hafts Offer $6 Billion For Dayton". The New York Times. Retrieved 2025-08-19.
  14. ^ a b Feder, Barnaby J. (September 4, 2004). "Herbert Haft, Founder of Discount Drugstores, Dies at 84". The New York Times. Retrieved 2025-08-19.
  15. ^ Sullivan, Patricia (September 3, 2004). "Discount Retailing Giant Stoked Bitter Family Feud". The Washington Post. Retrieved 2025-08-19.
  16. ^ a b "Herbert Haft Removed From Post at Company (Published 1994)". The New York Times. September 5, 1994. Retrieved 2025-08-19.
  17. ^ Hershey Jr, Robert D. (June 13, 1995). "Stylish House Is New Victim in Haft Family Feud". The New York Times. Retrieved 2025-08-19.
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