Philadelphia merchants ponder spate of closings
Philadelphia merchants ponder spate of closings
PHILADELPHIA -- In recent weeks, three businesses have closed on the Philadelphia market, here. This follows the debt-ridden closing of Ellis Fleisher Produce Co. in April 2007.
The remaining merchants on the market are now left pondering the reasons for the closings.
One of the closings is simply the result of a shocking tragedy. Mark Stout, who owned Eckert's Produce Inc. on the Philadelphia market, was doing what he loved most -- skiing in Steamboat Springs, CO -- when he fell into a tree well as he descended a Colorado slope Jan. 15 and died of suffocation.
In Philadelphia, his widow tried to run the business for a few weeks, but Eckert's Produce, which was in good financial standing, closed in late April.
Phillies Tomato, which operated from unit 101 on the market, began to have problems last October and closed several weeks ago.
Then, on April 25, J&F Produce Inc. suddenly closed the doors of its unit. John Vena, owner of John Vena Inc. on the Philadelphia Regional Produce Market, said of Mr. Stout, "Losing Mark ... it's impossible to say what we lost. He was a young guy with good ideas who was 100 percent committed to this market. He was a good competitor."
Jimmy Storey, owner of Quaker City Produce and president of the Philadelphia Fresh Food Terminal Corp., added, "What happened to Mark destroyed him, his family and his business. He was a great guy and a great person to have on the board."
Mr. Storey said May 2 that on Friday, April 25, "J&F chose to get out. On Ellis, I have no comment. I can't figure the whole Ellis thing out." Regarding Phillies Tomato, "I don't know much," Mr. Storey said. "I know John Sklarz [a principal in Phillies] is a good man, and I don't know what happened."
Jack Collotti Jr., owner of Collotti & Sons Inc., affirmed that on the Philadelphia market, "a lot of changes are in the air. Closures are not a good thing. More people make a stronger market."
Aside from Eckert's, Mr. Vena said of the other closures, "Some weren't adapting to the way business is run today. Some were overextended and others were lost to economic conditions or changes in their business or an inability to adapt. They would have been lost anyway."
Tom Kovacevich III, general manager of T.M. Kovacevich-Philadelphia Inc., said that the recent closures of businesses on the Philadelphia market "is a natural transition of companies. It's not necessarily bad, but it's sad that merchants go out of business." He noted that only a small, core group that was at the market when it opened in 1959 is still in operation at the market.
Mark Levin, president of M. Levin & Co., said that he was initially scheduled to have two units in the new Philadelphia market, but his firm may acquire one of the half-dozen now-empty units on the old market in order to gain a third unit in the new market.
George Manos, president of T.M. Kovacevich International Inc., said of the changes on the Philadelphia market, "We are paring ourselves down here. Some of the weaker sisters are falling out."
Mr. Manos said, "It is never a good sign" when businesses close, especially when those who own these companies "are not getting rich and moving to the Bahamas, but because they can't keep going."
If the businesses were struggling on the existing Philadelphia market, with increased costs on the new market, "they would really struggle," Mr. Manos said. "So it's probably better to move on today. I hate to see them go. These were old-line houses. We don't need to see anybody else go out, but if they can't afford this market, they can't afford the new market for sure."
Chip Wiechec, owner of Hunter Bros. on the Philadelphia Regional Produce Market, said that the closings of Fleisher, Phillies and J&F "all just blow my mind."
"Ellis, I can see how he got in his situation. Phillies Tomato, I can't imagine what happened, knowing his shippers. It baffles me that it happened so fast."
Sonny DiCrecchio, general manager of the Philadelphia Regional Produce Market, said that Ellis Fleisher had "financial problems." But he said that J&F and Phillies might have closed "because of the new market. If they were doing poorly and if they didn't have to make a commitment to move, maybe they would of toughed it out. There is more and more consolidation. As we get closer [to opening the new Philadelphia market], you may see more of this."
Mr. DiCrecchio said that the Philadelphia produce industry saw consolidations before the move from Dock Street to the current Philadelphia Regional Produce Market in 1959. "Not everyone came" to the market. "But those were different times. Now it's a [40-year] commitment, and the smaller business may consolidate with a larger - or other smaller houses."
If there is a shakeout with consolidations, Mr. DiCrecchio said that it is not because he and his board failed to make an effort to look out for small companies in the planning and design of the new market.
"It may not appear to be the case, but we fought to keep these [construction and rent] numbers as low as possible," he said. "If we hadn't done that, the small guys couldn't survive at all.
"I believe if we were in the new market two or three years ago, companies like J&F and Phillies would have saved their business," he added. "The new market would have juiced them up enough to stay in business."
The remaining merchants on the market are now left pondering the reasons for the closings.
One of the closings is simply the result of a shocking tragedy. Mark Stout, who owned Eckert's Produce Inc. on the Philadelphia market, was doing what he loved most -- skiing in Steamboat Springs, CO -- when he fell into a tree well as he descended a Colorado slope Jan. 15 and died of suffocation.
In Philadelphia, his widow tried to run the business for a few weeks, but Eckert's Produce, which was in good financial standing, closed in late April.
Phillies Tomato, which operated from unit 101 on the market, began to have problems last October and closed several weeks ago.
Then, on April 25, J&F Produce Inc. suddenly closed the doors of its unit. John Vena, owner of John Vena Inc. on the Philadelphia Regional Produce Market, said of Mr. Stout, "Losing Mark ... it's impossible to say what we lost. He was a young guy with good ideas who was 100 percent committed to this market. He was a good competitor."
Jimmy Storey, owner of Quaker City Produce and president of the Philadelphia Fresh Food Terminal Corp., added, "What happened to Mark destroyed him, his family and his business. He was a great guy and a great person to have on the board."
Mr. Storey said May 2 that on Friday, April 25, "J&F chose to get out. On Ellis, I have no comment. I can't figure the whole Ellis thing out." Regarding Phillies Tomato, "I don't know much," Mr. Storey said. "I know John Sklarz [a principal in Phillies] is a good man, and I don't know what happened."
Jack Collotti Jr., owner of Collotti & Sons Inc., affirmed that on the Philadelphia market, "a lot of changes are in the air. Closures are not a good thing. More people make a stronger market."
Aside from Eckert's, Mr. Vena said of the other closures, "Some weren't adapting to the way business is run today. Some were overextended and others were lost to economic conditions or changes in their business or an inability to adapt. They would have been lost anyway."
Tom Kovacevich III, general manager of T.M. Kovacevich-Philadelphia Inc., said that the recent closures of businesses on the Philadelphia market "is a natural transition of companies. It's not necessarily bad, but it's sad that merchants go out of business." He noted that only a small, core group that was at the market when it opened in 1959 is still in operation at the market.
Mark Levin, president of M. Levin & Co., said that he was initially scheduled to have two units in the new Philadelphia market, but his firm may acquire one of the half-dozen now-empty units on the old market in order to gain a third unit in the new market.
George Manos, president of T.M. Kovacevich International Inc., said of the changes on the Philadelphia market, "We are paring ourselves down here. Some of the weaker sisters are falling out."
Mr. Manos said, "It is never a good sign" when businesses close, especially when those who own these companies "are not getting rich and moving to the Bahamas, but because they can't keep going."
If the businesses were struggling on the existing Philadelphia market, with increased costs on the new market, "they would really struggle," Mr. Manos said. "So it's probably better to move on today. I hate to see them go. These were old-line houses. We don't need to see anybody else go out, but if they can't afford this market, they can't afford the new market for sure."
Chip Wiechec, owner of Hunter Bros. on the Philadelphia Regional Produce Market, said that the closings of Fleisher, Phillies and J&F "all just blow my mind."
"Ellis, I can see how he got in his situation. Phillies Tomato, I can't imagine what happened, knowing his shippers. It baffles me that it happened so fast."
Sonny DiCrecchio, general manager of the Philadelphia Regional Produce Market, said that Ellis Fleisher had "financial problems." But he said that J&F and Phillies might have closed "because of the new market. If they were doing poorly and if they didn't have to make a commitment to move, maybe they would of toughed it out. There is more and more consolidation. As we get closer [to opening the new Philadelphia market], you may see more of this."
Mr. DiCrecchio said that the Philadelphia produce industry saw consolidations before the move from Dock Street to the current Philadelphia Regional Produce Market in 1959. "Not everyone came" to the market. "But those were different times. Now it's a [40-year] commitment, and the smaller business may consolidate with a larger - or other smaller houses."
If there is a shakeout with consolidations, Mr. DiCrecchio said that it is not because he and his board failed to make an effort to look out for small companies in the planning and design of the new market.
"It may not appear to be the case, but we fought to keep these [construction and rent] numbers as low as possible," he said. "If we hadn't done that, the small guys couldn't survive at all.
"I believe if we were in the new market two or three years ago, companies like J&F and Phillies would have saved their business," he added. "The new market would have juiced them up enough to stay in business."
