Steve Madden

Steven Madden, Ltd.
Public
Traded as NASDAQ: SHOO
Industry Footwear & Accessories
Founded 1990
Headquarters 52-16 Barnett Ave.
Long Island City, New York, USA
Key people
 Steve Madden - Founder, Creative & Design Chief
Edward Rosenfeld - CEO
Products Shoes & Accessories
Revenue IncreaseUSD $1.23 Billion (FY 2012)
Website stevemadden.com
A shop located in Beijing
Steve Madden

Steve Madden (born 1958) is the founder and former CEO of Steven Madden, Ltd., a publicly-traded footwear company.

Life and career

Madden was born in Far Rockaway, Queens, and has Irish and Jewish ancestry.[1] He grew up in adjoining Lawrence (and graduated from the local high school)[2][3] in Nassau County, New York.[4][5] The youngest of three brothers, he started the company with $1,100 in 1990 by selling shoes out of the trunk of his car. The brand reported revenues of $1.23 billion in 2012(FY 2012),[6] and is sold throughout the world.

He is married to Wendy Ballew, his former director of operations. The couple has three children, twins Jack and Stevie Madden,[7] and Goldie Ryan Madden.[8]

Retail stores

There are roughly 100 Steve Madden retail stores across the United States. While the company and its stores focus primarily on Steve Madden products, they also carry three more subcategorized Steve Madden lines; Madden Girl, STEVEN by Steve Madden and Freebird by Steven.

Internationally, Steve Madden has a presence in over 55 countries with roughly 185 retail stores & 180 concessions.

Betsy Johnson NYC
Steve Madden Companies, Betsy Johnson

Awards and honors

Fraud

Madden's financial affairs were closely entangled with Long Island "pump and dump" brokerage Stratton Oakmont, cofounded by Madden's childhood friend Danny Porush.

In June 2000, a "class action" lawsuit was filed against Steve Madden[17] for issuing materially false and misleading statements during the Class Period. A settlement of $9,000,000 was reached in 2004.[18] In 2001, the SEC filed charges against Madden in Federal Court in New York state, alleging SEC violations.[19] Because the violations were not criminal in nature, the SEC was seeking to recover $1,637,000 in a combination of illegally avoided losses, interest, and a civil penalty.

In 2002, Madden was convicted of stock manipulation, money, and securities fraud. He was sentenced to 31 months in prison, and was made to resign as CEO from Steven Madden, Ltd. and from the board of directors.[20]

Shortly after resigning as CEO, Madden set himself up as a creative consultant with Steven Madden, Ltd., a position for which he drew $700,000 even when he was in prison.[20]

Madden served time in the Federal Prison Camp, Eglin, at Eglin Air Force Base, and later Coleman Federal Correctional Complex, near Ocala FL. Madden was released from prison in April 2005.[21] He then attended a New York City halfway house.[22] Madden's attorney, Joel Winograd, said that Madden would stay at the house for 60 days.[23] After his release from a halfway house, he was restricted to home confinement for a period.[24]

In popular culture

Steve Madden (played by Jake Hoffman) is featured in the Martin Scorsese film, The Wolf of Wall Street, which is based on the Jordan Belfort memoir of the same name. In the movie, Madden is seen visiting Stratton Oakmont, where Belfort gives the brokers a rousing pep talk about pushing Madden's stock.[25]

References

  1. ↑ Berkman, Johanna (February 26, 2001). "Steve Madden: Crisis of the Sole". New York. Retrieved 2015-01-11.
  2. ↑ "Steve Madden: Crisis of the Sole". NYMag.com.
  3. ↑ Lawrence a Winner in NBC Smash Contest Designer Steve Madden also set to match prize. "Lawrence High School will see an infusion of $6,000 to get its Sandy-damaged auditorium in top shape after the school was named one of five grand prize winners in NBC Smash’s “Make a Musical” contest, which will be matched by alumnus and fashion designer Steve Madden."
  4. ↑ Dominguez, Robert (October 19, 2006). "Bringing It Back Home. Steve Madden's new ad campaign focuses on his fashion center - Queens". Daily News. Retrieved 2015-01-11. He grew up in Lawrence, L.I., where he worked in shoe stores from his high-school days until he started his own business in 1990, at 33, with an investment of just $1,100.
  5. ↑ Weisman, Aly (January 14, 2014). "Steve Madden Thought His 'Wolf Of Wall Street' Portrayal Was 'Too Nerdy'". Business Insider. Retrieved 2015-01-11.
  6. ↑ "Revenue for Steven_Madden (SHOO)". Wikinvest. 2012. Retrieved 2015-01-11.
  7. ↑ Triggs, Charlotte (October 4, 2007). "Steve Madden, Wife Welcome Twins". People. Retrieved 2015-01-11.
  8. ↑ Leon, Anya (March 13, 2013). "Steve Madden Welcomes Daughter Goldie Ryan". People. Retrieved 2015-01-11.
  9. ↑ 9.0 9.1 "Footwear News". Footwear News.
  10. ↑ "Footwear News". Footwear News.
  11. ↑ The NASDAQ OMX Group, Inc. "UPDATE -- Steven Madden, Ltd. (SHOO) Chief Executive Officer to Ring the NASDAQ Stock Market Closing Bell". GlobeNewswire News Room.
  12. ↑ http://www.twoten.org/News-and-Events/Recent-News/YPfor210-Celebrated-Steve-Maddens-Twenty-Years-in-the-Shoe-Business.aspx
  13. ↑ "Nordstrom rewards shareholders with higher dividend". The Seattle Times.
  14. ↑ "The AAFA American Image Awards to Honor Li & Fung; Steve Madden; John Bartlett; Fern Mallis; GAP Inc.; Shopbop.com; Bob & Suzanne Wright". PRUnderground.
  15. ↑ PMC Engineering. "EBay’s Apparel Push: New Selling Formats, More Brands in Wings". WWD.
  16. ↑ "Footwear News". Footwear News.
  17. ↑ "Class Action Against Steve Madden".
  18. ↑ "Steven Madden, Ltd. case".
  19. ↑ "Steve Madden: Litigation Release No. 17015 / May 23, 2001". sec.gov.
  20. ↑ 20.0 20.1 Walker, Rob (10 April 2002). "Genius of Capitalism: Steve Madden". Slate. Retrieved 28 October 2010.
  21. ↑ Setoodeh, Ramin. "Back on His Feet Again." Newsweek. 2007. 1. Retrieved on January 10, 2010.
  22. ↑ "MADDEN BACK IN NYC AFTER PRISON RELEASE.(Steve Madden, New York City)(Brief Article)." Footwear News. April 25, 2005. Retrieved on January 10, 2010.
  23. ↑ "Steve Madden released from federal prison." Newsday. April 16, 2005. Retrieved on January 10, 2010.
  24. ↑ Bonawitz, Amy. "Passages." People. June 27, 2005. Volume 63, No. 25. Retrieved on January 10, 2010.
  25. ↑ "Steve Madden Thought His 'Wolf Of Wall Street' Portrayal Was 'Too Nerdy'". Business Insider. 14 January 2014.

Sources