Oklahoma saw the rise and fall of Harold's clothing chain

Norman-based clothing chain was a success story that collapsed amid a change in ownership and the Great Recession.
by Brianna Bailey Modified: July 21, 2014 at 2:00 pm •  Published: July 20, 2014

At age 90, Harold Powell has managed to outlive Harold’s Stores Inc., the upscale clothing chain he founded from a single shop across the street from the University of Oklahoma in 1948.

“It’s quite remarkable — he just keeps on going,” said his wife, Ann Powell.

At one time, Harold’s had 53 stores that spanned 22 states. Harold’s Stores annual sales topped $150 million, and the company employed as many as 1,800 people before filing for bankruptcy and closing all of its stores in 2008 in the middle of the financial crisis.

Harold Powell still wears a thick gold ring on his left ring finger next to his wedding band engraved with the image of an antique carousel horse, a longtime logo and mascot for Harold’s Stores.

The rights to the carousel horse logo, along with Harold Powell’s name, once used to brand everything from neckties to raincoats, which eventually were liquidated through the bankruptcy court, along with all of the company’s assets.

Harold Powell was retired, and had sold most of his stock years before Harold’s Stores filed for bankruptcy. The company’s headquarters had moved to Dallas and had since come under the control of a group of preferred shareholders — Williams-Sonoma Chairman and CEO and Durant native Howard Lester and Ronald de Waal, a Dutch-born entrepreneur and former vice-chairman for Saks Inc.

“A lot of success is just about luck and timing,” Powell said. “The same with failure.”

The original carousel horse, a massive antique Harold Powell purchased decades ago from a warehouse in New York, still resides in daughter Rebecca Powell Casey’s Texas vacation home. The family calls the horse Lynn.

Casey has fond memories of her and her brother and sister lining up in front of Lynn at the Norman Harold’s store for family photos as a child.

“He was like a fourth sibling to me growing up,” Casey recalls.

Traces linger in Norman

The Powell family has had a presence on Norman’s Campus Corner for three generations, which continues today.

In 1927, Harold Powell’s parents, Ruby “Dutchie” and H.E. Powell opened Sooner Drug, a drug store and soda fountain on Campus Corner. Harold Powell grew up helping out around the drug store and returned to Campus Corner after serving in the Navy to open Harold’s in 1948.

The store initially sold exclusively menswear and was one of the first stores west of the Mississippi to carry clothing in the styles favored at East Coast Ivy League schools.

“It was more a philosophy than a style of dress,” Harold Powell recalls. “It was more conservative and very understated.”

Harold’s added a women’s boutique in 1958 featuring clothing in the same preppy, East Coast college town styles. By the late 1970s, Harold’s had launched its own credit card and had opened stores in high-end shopping centers across the region, including Oklahoma City, Tulsa and Dallas.

Harold’s Stores Inc. went public in 1987 and launched a successful clothing catalog in 1990. Going public allowed Harold’s to grow and to open dozens of new stores over subsequent years. At one time, the company had its own trucks and distribution center on Lindsey Street in Norman.

“The retail market was changing and they began to manufacture their own products, and that required additional quantities and volume,” said Harold Powell’s son, H. Rainey Powell, who served in various leadership positions at Harold’s Stores, including president and chief financial officer.

Traces of Harold’s still linger in Norman and the Powell family continues to control a large chunk of the real estate on Campus Corner. A small shopping center on Buchanan Avenue is still called Harold’s Square.

Cafe Plaid, a restaurant Harold’s opened up next to the original Harold’s store on Boyd Street in Norman in 1996, remains a busy lunch spot, but operates under different ownership.

Facing an alleyway on Campus Corner, some of the original gold leaf and dark wood signage from the original Harold’s store still exists, although the cloth awning is torn and faded.

“That’s what landlords call deferred maintenance,” joked H. Rainey Powell, who manages the family’s real estate holdings.

Fortunes shift

By 2001, a new investment group controlled Harold’s, and the company’s headquarters had moved to Dallas. Lester and de Waal loaned Harold’s millions of dollars over the next several years to keep it afloat as it posted operating losses for several successive years.

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by Brianna Bailey
Business Writer
Brianna Bailey has lived in Idaho, Germany and Southern California, but Oklahoma is her adopted home. She has a bachelor's degree in Journalism from the Univerisity of Oklahoma and has worked at several newspapers in Oklahoma and Southern...
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TIMELINE

1948: Harold Powell opens the first Harold’s store on Campus Corner in Norman.

1952: Harold’s opens a store at Tulsa’s Utica Square shopping center.

1974: Harold’s launches its own credit card.

1977: Harold’s opens its first location outside of Oklahoma in Dallas’ Highland Park Village.

1987: Harold’s Stores Inc. goes public on the American Stock Exchange.

1990: Harold’s launches its first clothing catalog.

1996: Harold’s launches Cafe Plaid, a 2,300 square-foot restaurant on Campus Corner to complement the Norman flagship store.

1998: Harold Powell steps down as chairman and CEO, of Harold’s Stores, becoming chairman emeritus.

1999: Harold’s has 53 stores in 22 states.

2001: Harold’s corporate headquarters moves to Dallas.

2005-2006: Harold’s posts annual losses for two straight years.

2008: Harold’s Stores Inc. files for Chapter 11 and announces it will close all stores.

Unchained

This story is part of a series on Oklahoma’s forgotten retail chains.

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