Decline and Sale
Various members of the Johnson family helmed E-J until outside management was brought in starting in 1957. By then, the company had begun a slow decline. The tanneries closed in 1968. E-J's medical department was not closed until 1969, and the plan to close the last of its shoe manufacturing plants in the Triple Cities area was not announced until April 1998.
The demise of the E-J was rooted in many economic changes. Its founding principles of valuing labor were threatened by the availability of cheap foreign labor and the rise of global shoemakers such as Nike. According to some sources, C.F. Johnson was a vehement critic of free trade, and believed that it was contrary to his glorification of the American worker. The demise of the company may also be attributable, in part, to bad business decisions, including the continuation of its focus during the 1950s on work shoes when the market for lighter, more stylish shoes was expanding and potentially more profitable.
In 1995, E-J was purchased by US Industries. Inc. and its name was changed to EJ Footwear Corp., and its base of operations changed to Franklin, Tennessee. In 2000, EJ Footwear was bought out by Citicorp Venture Capital Ltd., a subsidiary of Citigroup.
Finally, on December 6, 2004, EJ Footwear agreed to be acquired by Rocky Shoes & Boots, Inc. EJ had previously been the sole licensee for Rocky's "Dickies" line of work footwear. According to its 2005 annual report, Rocky's sales more than doubled over 2004, largely reflecting this acquisition.
Read more about this topic: Endicott Johnson Corporation
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