Joseph Nakash

Joseph Nakash (born 1942) is an American businessman, real estate investor, and co-founder of Jordache Enterprises.

Early life and education

Nakash was born to a Syrian Jewish family in Mandatory Palestine.^[1] In 1962, he immigrated to New York City^[1] where he worked as a stock boy and saved enough money to bring his brothers Raphael (Ralph) and Abraham (Avi) to the United States in 1966.^[2]

Career

In 1974, pooling their $20,000 in savings, they purchased an appliance store called V.I.M. and opened a retail store in Bushwick, Brooklyn selling irregular jeans latching onto the newfound popularity of designer jeans.^[2][3] By 1978, they had four stores^[2] and after their largest store was burned during the New York City blackout of 1977, they took the $120,000 policy settlement and started to manufacture their own brand of upscale jeans under the Jordache label.^[4] A successful advertising campaign funded with $300,000 of their own money and $250,000 from Israel's Bank Leumi^[2] made the brand a resounding success with teenage girls^[4] with Brooke Shields serving as the company’s in-house model.^[4] In 1979, Jordache had $72 million in sales.^[5] In 1981, they started licensing the brand which added $100 million to their $200 million a year in wholesale revenue for its jeans and expanded their line to include children's clothing, makeup, handbags and suitcases.^[4] In 1983, revenues grew to $400 million and they founded Yama Maritime Inc. which owned eight cargo ships.^[5]

In 1983, they acquired a 50% stake in Guess Jeans^[4] from the Marciano Brothers (Paul, Georges, Armand and Maurice) of Los Angeles.^[4] The joint venture soured^[6] and in 1989, a California superior court jury found that the Nakashes had fraudulently lured the Marcianos into the transaction.^[3] In 1990, the Nakash brothers settled for $66 million of $106 million escrowed profits and the ownership of the brand name “Gasoline” while the Marciano brothers received the brand “Diesel.”^[4][7] In the 1990s, the Jordache brand lost some of its luster due to new competition^[4] and in 1995, they took the brand down market and started selling Jordache jeans at the discount chain Wal-Mart while higher end retailers such as Macy's dropped the brand.^[3] Their efforts were successful and in the first year with Wal-Mart, they sold $100 million in jeans which made up 30% of Jordache Enterprises total sales.^[3] They then moved into contract manufacturing - making jeans and clothing for Tommy Hilfiger, the Gap, American Eagle, and Abercrombie & Fitch.^[3]

Using profits from their apparel business, they diversified and started investing in banking and real estate primarily in New York, Miami, New Jersey and Israel.^[4] Nakash also purchased Arkiya, a money-losing discount airline flying between Israel and Europe which they returned to profitability.^[4] In 2004, they brothers purchased AMPA Real Estate of Israel and expanded into the purchase of hotels and development of residential projects in Israel.^[4][8] They own the Park Plaza Orchid Hotel in Tel Aviv and the Kineret Orchid Vacation Resort on the Sea of Galilee.^[4]

In 2006, they invested in Israeli agriculture establishing an oil press for $2 million in partnership with Kibbutz Revivim which produces olive oil under the Halutza brand; the Nakashes have invested about $5.5 million in olive groves, olive oil production, and vineyards.^[4] In 2013, via their investment company Nakash Holdings, they purchased a $100 million office building in Washington, D.C.^[5] In 2013, they purchased the Versace Mansion in Miami Beach with Eli Gindi (of the Gindi family which founded the Century 21 department store)^[9] where the Nakashes own five hotels.^[10][11] In April 2013, they purchased for $105 million^[11] - via their shipping company Papo Shipping Company - the exclusive right to operate the Port of Eilat in Israel^[5] for 15 years.^[11] In April 2013, he and his brothers purchased the Isrotel Tower in Tel Aviv for $150 million.^[11]

Personal life

Nakash is married and practices Judaism.^[5] He is considered the patriarch of the Nakash family.^[5] His son Steve Nakash works in the family business.^[3] Nakash is a founding member of the Sephardic Community Alliance.^[12]

References