Story of Rothco

267 Pages·2017·6.49 MB·English

A Family Business

The Story of
ROTHCO
Second Edition
2010/2018

First published in 2010

YourOwnStory
Book Design © 2010/2018

This book belongs to:
CONTENTS

Introduction:
A Family Business…………………………………..…5

Chapter 1
Milton Somberg……………………………………..…9

Chapter 2
N. Rothenberg and Son………………………………..31

Chapter 3
Brothers-In-Law……………………………………….47

Chapter 4
Two Companies……………………………………..…63

Chapter 5
A Next Generation…………………………………..…83

Chapter 6
Changes at ROTHCO…………………………………..101

Chapter 7
Surviving and Thriving…………………………………125

Chapter 8
ROTHCO: Family Values ……………………………..153

Rothco: Today and Tomorrow…………………………167

Additional Photo………………………………………..244
The Story of ROTHCO 2
3 A Family Business
The Story of ROTHCO 4

A Family Business: The Story of ROTHCO is
presented with love to Howard Somberg from his wife Diane
for their 35th wedding anniversary. It is dedicated to
Howard, and to all the great people, especially the family,
who made ROTHCO what it is.
5 A Family Business

Introduction:

A Family Business
The Story of ROTHCO 6
What is a family business? What makes it work?
What are the dangers, the pitfalls inherent in a business in
which members of the same family are trying to work
together to achieve the same common goals? What are the
benefits, the rewards that may be achieved in the unique
structure of a family business that could not be found in a
more generic business arrangement?
Wikipedia describes a family business in which one
or more members of one or more families have a significant
ownership interest toward the business’ overall well being.
While this is a nice, tight definition it does not even
skim the surface of what a family business is, and what
running a successful family business entails.
Running a family business is very much akin to
walking a tightrope. If successful, trust within the working
relationships can be surpassed by none. It can also bring
families closer together, as their financial and business
success is now interlinked. Good news to one means good
news to all, and the camaraderie can be great. When trust
between family members is deep and a genuine interest in
the other’s well being exists, it can give a business an
advantage to all competitors.
But there is the other side. What about the times
when business is not as good. What about times when
people who have the best of intentions differ in their
7 A Family Business
opinions about the best direction for the company, the right
merchandise to sell, the difficult choices for the future?
How could this affect not only the business, but the
entire family dynamic? In family businesses sometimes
strong willed personalities take strong stands, and others in
the business, and the family, are put in the awkward position
of choosing sides. The hurt can cripple a business, and
damage a family.
ROTHCO, a company that started in 1919 as a man
with a horse, a buggy and a bell, is the extraordinary story of
a business whose success over the years was at first slow and
steady…and then, an explosive growth. And it has survived,
and thrived, as a family business.
That does not mean it has not had its share of familial
conflict. From its early years, strong men with strong
personalities had very decisive opinions about the direction
the company should go. Sometimes the men could work out
these differences. Some of them could not be worked out.
Its impact was of course felt throughout the family.
Sometimes it was felt through generations.
But ROTHCO succeeded, and continues to succeed,
because of some of the unparalleled relationships between
the people who started it, and then helped nourish it. Fathers
working with sons, fathers-in-law working with sons-in-law.
Brothers working with brothers in law. The trust and respect
that existed between these people helped take ROTHCO
The Story of ROTHCO 8
from its early, modest beginnings to the multimillion dollar
company it is today. These people were able to form the
unique bonds that went beyond business. Their familial love
for each other helped create an atmosphere of trust, of a
cooperative spirit. Perhaps at times specific individuals
could have looked out for themselves first. Perhaps they
could have sought to maximize their own personal profits
rather than think of their co-workers and partners, of the
business as a whole. But this was a family business. A
unique dynamic, in which one person’s success not only
contributed to the success of others within the company—
within the family—but was dependant on it.
But who were the people behind this amazing family
business, this business which embodied the American spirit,
hard work and vision? This business that saw its share of
hard times and hard choices, but not only continued to
rebound, continued to flourish?
They were a business, and remain a business, in
which their decisions are based on economic times and
financial good sense.
But first and foremost, they were a family.