The 'crazy' tale of second-chance Eddie

Discount Store News, Jan 26, 1998 by Tony Lisanti

I can hear the shrieking sound reverberating from the woofers of my old woodgrain stereo speakers as the unmistakable voice of annoying pitchman Jerry Carroll proclaims, "Our prices are Insaaaaane!"

In fact, it seems like only a few years ago that those familiar commercials for Crazy Eddie, the basis for many imitators and stand-up comedians, blared over the airwaves. But it was actually almost a decade ago when the Edison, N.J.-based Crazy Eddie electronics chain collapsed and liquidated as a result of securities fraud.

It just doesn't seem that long ago when Crazy Eddie founder Eddie Antar fled the country and was on the run for two years before he was arrested in Israel, extradited, tried, sentenced to 12 1/2 years in prison and ordered to repay $121 million in restitution for stock fraud.

And now, believe it or not, the Antar family plans to bring back the high-flying chain, which was once described as "the worst managed company in the country." A new store is scheduled to open next month in Wayne, N.J.

So, in the shrieking voice of that famous announcer, I would like to ask, "Whhhhhy?"

Why does the electronics retailing industry need another discount electronics retailer -- particularly in the Northeast, where a half-dozen retailers have succumbed to the intense competition of the marketplace over the past few years?

Why does a family tarnished by fraud and deception think it can win back customers some 10 years later when the case seems like it happened just a short time ago?

Why does the Antar family think that the Crazy Eddie name will conjure up perceptions of low prices and brand name products like it once did?

Why should consumers line up to shop Crazy Eddie when the market is overstored to begin with and great deals are readily available from reputable national chains and independents?

Why should vendors lend their support to a retailer with a sordid past, when they are reluctant to support existing multi-million dollar retailers?

On the other hand, why not? After all, this is a country based on second chances. Could there be a sizable contingent of forgiving and forgetful consumers who will flock to Crazy Eddie circa 1998? Is there possibly a whole group of consumers so eager to spend their money who frankly don't remember the chain, nor care about the skeletons of the past?

And why shouldn't vendors supply product to Crazy Eddie, a chain that once boasted 43 stores and over $320 million in sales? After all, some vendors just need to move product regardless of the issues attached to the sale.

Why should other reputable retailers worry about Crazy Eddie re-entering the lucrative northern New Jersey market? They have enough to worry about already: Within a few miles of Crazy Eddie's proposed unit, Circuit City just recently broke ground on a new unit; P.C. Richard, which is practically next door, competes ferociously; and The Wiz fights for survival.

Furthermore, remember that the Crazy Eddie saga also boasts a positive story of growth and expansion that could just happen again -- especially with Eddie Antar expected to be released from prison in two short years.

With the appropriate financing, there's no telling how quickly this creative retailer, which at one time was the fifth largest CE chain in the country, could beat the very long odds and return to the prominent position it once held.

So why not welcome back Eddie, Sammy, Allen, Mitchell and the rest of the Antar family, and of course Jerry Carroll, pitchman extraordinaire.

Yeah, it's insane. Yeah, it's crazy. But so is the world we live in. And the return of Crazy Eddie is just another sign of the times. Ultimately, the consumer will be the final judge.