Marty Krasnov, June 22, 2016

Muhlenberg College: Trexler Library Oral History Repository
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00:00:00 - Family History

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Partial Transcript: SC: Today is June 22, 2016. First I’d like you to put yourself into some kind of context. What’s your full name, when were you born and where were you born?

MK: I’m Marty Krasnov, I was born in 1938 in the Jewish Hospital of Philadelphia.

SC: Over your life where have you lived? Sort of to see an arc of where you’ve lived from Philadelphia perhaps to where you are now?

MK: I believe it was 1940 when the family moved to Allentown, and I basically have lived here ever since.

00:17:33 - Women Working Culture

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Partial Transcript: SC: Do you know where any other people worked in this country, whether the women worked because they were poor?

MK: My mother, apparently, always had to work, and she went to night school so I presume, but she didn’t talk much about it. I think she worked in a department store. My father and his older brother Joseph and, I presume, my grandfather because there's a safe . . . but we had one time, Isadore Krasnov & Sons. My grandfather was Isadore. I don’t know why they had this huge safe because they didn’t have too much at the time. They started peddling on the street and started making blouses and dresses in their own home, and I guess the business kind of grew.

00:21:31 - Education

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Partial Transcript: SC: Would you now talk about where you have gone to school and where you’ve worked from the time you were a little kid, all the way to when you started working?

MK: My recollection of growing up was in what would today be referred to as the Jewish ghetto, which was somewhere between South Fulton or S. 15th St. to South 17th St. I grew up on 16th St. and, even today, some of the people you’ve interviewed grew up on that street. And I know almost every house when I drive by, who lived here, who lived there and what have you.

00:33:41 - More Family History

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Partial Transcript: GE: Can you give me the names of your parents and grandparents?

MK: Sure. I’m gonna take these pictures out so you can look at them. I knew I was going to show these pictures to someone. I have them, and we have many more and you’ve seen pictures very similar to these. We’ll start with my family, as children, my older sister, as you can tell, my sister, Roz, that is me, my older sister, Roz. She is living in New Jersey and she is seven years older than I, and my sister, Mitsi Goldenberg, living in Florida. Parents passed away, my father was 85. He died on my birthday in 1980 and my mother passed away in 1995 and she was 88.

GE: What were their names?

MK: Sam, Samuel and Fanny, with a Y.

GE: So, it’s Samuel Krasnov, and his father was Isidore?

MK: Isidore, and my mother’s father was Marcus, and I’m named after my mother’s father

GE: And what was your mother’s maiden name?

MK: Abramson. And this is when she was a little girl in Russia with her governess and brother. Both of those were born in Odessa. And this is her family in Russia. My Uncle Leon is on the left.

00:39:23 - Who Ran the Business

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Partial Transcript: GE: So Marty, we’re just going to continue now and talk more about the business. You shared with us a little bit about the origins. If you want to share with us a little bit more, I don’t know quite who is in the business, in your family?

MK: The business was set up with basically . . . I don’t know exactly when my grandfather died, but he wasn’t really active in the business. He didn’t speak the language. My father, and I guess his older brother, picked it up rather quickly, I’m not sure how quick. They both spoke with a little dialect, you know, that we’re all used to hearing from that generation. So, basically, it was my Uncle Joe and my father, and, at the start of the business, my dad was the “inside manufacturing person” and my uncle was the sales and marketing person.

00:43:48 - The Business During the War

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Partial Transcript: GE: And so the two had the military contract throughout the war?

MK: Surefit had. We were the only ones making slipcovers up until the end of the war and because the retail stores wanted slipcovers, somehow this Comfy was able to get fabrics or what have you. My dad’s whole factory was dedicated to the war products so they couldn’t flip back. They didn’t have the capacity to do that. And there are a number of old-time employees who stayed with the company for many many years, and I was able to get a flavor of what they did during the war. They employed hundreds of people in this silk mill on Sand Island in Bethlehem.

00:49:06 - Transition from Wartime to Peacetime for the Business

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Partial Transcript: GE: Marty, want to share with us a little bit, what was the transition from wartime to peacetime like for your father’s business?

MK: Well I think they did rather well during the war because of the contracts they had with the government and it kept a lot of people out of the Army. Maybe some of them wouldn’t have survived, I don’t know. The other thing about the war and shortly after, well even prior to the period, when I came into the business, and I’m a young know-nothing who thought I knew everything, Wharton graduate and all of that stuff. I asked, we have too many relatives working here. I remember everyone, because they were mostly immigrants, they talked loud, and we had an intercom system. I felt a little embarrassed because everyone would hear shouting, even when we would go to my grandmother’s house in Philadelphia every weekend. To me, as a kid, everyone was talking loudly. He hired a number of relatives. My attitude towards that was, you know, this is not a good thing because they’re not necessarily the best qualified.

Only later did I realize that he was doing a good thing and providing jobs. Many of them were hired during the Depression. After the war, he brought a number of relatives and others that survived the war, Holocaust survivors in, and provided jobs to them.

00:52:42 - Steady Growth of the Business

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Partial Transcript: GE: So it sounds, from what I’m hearing, that it was a little bit recession-proof. It didn’t really go up during good times that strongly or down during bad times. It was pretty steady.

MK: It was kind of steady.

GE: Steady but growing.

MK: Steady but growing. You know the ups and downs and what have you. My dad was very conservative. At that time, the major customers were the national chains like Sears, Montgomery Wards, and every major city had their homegrown department store and they sold to most of every city’s homegrown department store.

GE: And it sounds like it was nationwide.

01:00:23 - Marty's Active Involvement in the Business

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Partial Transcript: GE: So you really started actively in the business about 1960?

MK: 1960 and my brother in-laws, both brother in-laws, were in the business. And we also had my three cousins from my Uncle Joe. He had passed away in 1957 and the family, like a lot of situations, it wasn’t a good fit. And we bought them out in 1963. Our family acquired their interest and it was at a time where, I think, there was a recession or something. We lost some key people because of the family, not a feud, but it was a problem that existed.

GE: What did they end up doing?

MK: One ended up teaching, one lived in Philadelphia, two of them worked in New York, but one commuted from Philadelphia. He ended up teaching in Philly and he died at an early age.

01:03:38 - Diversification of Products

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Partial Transcript: MK: Now, from that time on, in more recent years, the company diversified in other products and had a very nice growth rate.

GE: Want to tell us about that?

MK: We were a little concerned about the slipcover industry and the furniture covering industry because we also went into furniture throws. As the market expanded, with the K-Marts of the world, they couldn’t handle the slipcovers, per say, but they could handle furniture throws. We were producing, I remember, ten thousand throws a day.

GE: And what is a throw, versus a slipcover?

MK: A slipcover is a fitted slipcover, with the cushions.

GE: And it kind of has that elastic edge, right?

MK: Well, they’re a little different today. But the way we did it, we did it with mostly knitted stretch slipcovers.

01:07:45 - Struggles with Competition

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Partial Transcript: MK: We acquired a little competitor that had a . . . from Beatrice Foods that sold certain discounters on consignments that we were able to have service people now go in and count the inventory. We controlled it and we got bigger margins. Then, around the early 70s, we could see that some of these major catalogs and department stores started going out of business. The Wanamakers, the Gimbels, and we were doing slipcovers with them as well, but not to the extent that we were doing it with Sears and Montgomery Ward. We had the opportunity and we decided we should diversify so we bought a company that was manufacturing bedspreads in Japan and it was a very niche market.

We couldn’t compete with the big mills, the Burlington or J.P. Stevens, with selling bedspreads and that was even pre-comforters. They owned the space and what have you in the stores. So we found this niche market where they call it outline quilting where the stitching is done around the design, so it brought it out and they called that outline.

01:12:59 - Opportunity for 60 Minutes Interview

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Partial Transcript: MK: At one point, I get a call from 60 Minutes and they want to interview me. They were doing a whole thing on the twin plants in Mexico, the assembly operations and I said, “all the major companies, Philips, General Motors, Ford, none of them use their own names. In Mexico, they use a different name, but they were employing thousands and thousands of people. Why don’t you interview them?” They wanted to come into our facility. It was a girl with an English accent on the phone and she said, “well we’d really like to interview you about it” and I said, “It’s not all bad. This Mexico opportunity that a lot of American companies are taking advantage of, if it wasn’t in Mexico, it would be in Asia. The law is that you can assemble US products, and you don’t pay duty when they come back. You only pay duty on the added value which is the labor.”

01:15:43 - Expanding into Women's Apparel

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Partial Transcript: MK: Then we eventually went into women’s apparel because we were making our knitting when the lycra pants became very popular with the women’s fashion. We had a knitting operation because of our stretchy fabrics that we made. We started selling that fabric, lycra fabric, and then we said, because of Mexico, we might as well manufacture the whole product. Through the period, the business grew steady and it was pretty sound. We had such a diversity of products and a diversity of customers. Our largest customer when we sold it in 1990 was J.C. Penney, that represented 6% of our business, so we had a lot of good attributes to it. And the reason we sold the company, much of it was through my initiating the processes.

01:17:00 - Multi-Generational Business

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Partial Transcript: MK: Both brothers in law were 10 years older than I. I was 50 at the time, they were 60. I had 2 nephews in the business, and my children were young, and my sister Mitzi just had girls. We didn’t have any direction that the family would go. I remember the problems we had with my uncle’s son, and I said, you know, we’re having a pretty good run. There’s a time. When the first generation comes up with the idea, and they’re the ones that struggle through it, and they’re uneducated. So they get it to a point and then the second generation comes in and they’re educated. They still have some values because they remember growing up in a row house and what have you. And they move it to the next level. The third generation could start running into problems because now you’re not dealing with brothers and sisters, you’re dealing with cousins. I went through a number of family succession seminars, and I had that implanted that someday--my dad had already passed away, and my mother had Alzheimer’s so we didn’t want her to know.

01:25:10 - Operations in Mexico

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Partial Transcript: GE: So a couple of questions about the business. When you were in Mexico, that’s where the assembly was taking place and you said you had about 500 people?

MK: Yes.

GE: Back here in Bethlehem, how many people were still here?

MK: We still had about 400-500 people here.

GE: And they were just doing everything but assembling?

MK: Well they were assembling slipcovers. We were still manufacturing furniture throws and slipcovers in Bethlehem.

GE: This was the other pieces? What was being assembled in Mexico?

MK: The bed coverings. The outline quilting. We had that niche and that whole niche was very labor intensive. So that was our only way we could sell a product because we were one of the first ones to go into outline quilting and the stores, you had a flower and you just bring the quilt around it. And you see that today. Now it’s a lot of automatic equipment that does that. They program it, but at that time, it was all very extensive labor.

01:28:47 - Unions

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Partial Transcript: SC: And the other question was, which labor union would it have been?

MK: The United Textile Workers of America. It was a smaller union, and we always had a pretty good relationship with them. We had strikes, I remember we’ve had strikes, but nothing really long-lasting.

GE: Just so I understand, you started out with Slipcovers, then you very much did the throws, the quilting became a niche that you were producing in Mexico, then you were also doing the throw pillows and curtains, right?

MK: Yeah, we always did that. Now what had happened, as our bed covering business grew, it was around that time where Sears went out of the catalog business. They gave up a five billion dollar business overnight. Five billion is what they were doing in their catalog. The Sears catalog was an icon. Montgomery Wards went belly up, so we ended up with, in terms of catalogs, and again, this is all pre-internet days. If the internet would have been existing then, in fact, I had started my own catalog.

01:31:25 - Sales Force

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Partial Transcript: GE: Now tell me a little bit about how the sales force worked. It sounds like one of your brothers in law headed that part.

MK: Yeah, we had our main sales office. The showroom was on 34th Street, between Madison and 5th Avenue. That’s the later years, when I was there. We had offices on 26th Street when I first started, but that goes back. They were very attractive showrooms, and we displayed a lot of the bed coverings and furniture throws because the catalog people didn’t need showrooms. We had a showroom in Chicago for a number of years, and we had a showroom in California for a number of years. We had a warehouse in California. We had, initially, full time sales people, but then that became a very expensive thing, and we had a few full-time sales people that catered to the major accounts, but then we gravitated towards sales reps to handle other lines, as well.

01:49:33 - Jewish Involvement in the Industry

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Partial Transcript: GE: And the last question I’m going to ask before Sue asks you the final couple of questions, why do you think Jews were overrepresented in the needle-trade industry? This was an industry where they were really overrepresented.

MK: Well, I guess there was a number of reasons. I think they started out like my father, in their own homes, because it was easy to get a sewing machine. They came from Europe. They made their own clothes, so they had some inclination, you know, about that. They certainly couldn’t get jobs in banks. Most of them were uneducated anyway. They didn’t go to college, many didn’t even finish high school. They started these companies, but it was easy to get into. You buy a couple of sewing machines, and you go into it.

01:51:50 - What Has Made You Feel the Most Creative?

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Partial Transcript: SC: So, the last two questions are, what has made you feel the most creative in your life?

MK: Well I think I inherited some of that from my father. When I retired and moved to California, I decided that, other than golf, I had to be a little productive and use my head. So we have a, I don’t know if you’ve ever heard of the Osher program. Osher was an individual, and if you look it up, google Osher, they run senior citizen classes at universities. They have a terrific program in the desert because of so many retirees, and we were connected with Cal State of San Bernardino. I always managed to take courses there.

01:57:33 - What Do You Value Most in Life?

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Partial Transcript: SC: And this is very short. What do you value most in life?

MK: Well, I value humor, obviously family and what have you. But I value humor and I kind of gravitate to the deprived. I’m a Republican, leaning to the right on financial and way to the left on social. That kind of describes me. But, I appreciate, particularly in the later years, my parents, the struggles they went through, and that provided for a good life to me and my family. You could value a lot of the good things, and you could become very verbal, but basically, I like good humor and I like nice people, and I’m tolerant, too. People have different viewpoints. So what? Let it be. I’m kind of like laid back. And that’s my story.