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The three Freedman brothers agreed to a ground rule set down by their father in October 1991 when Charlie, Bill and Jonathan cofounded DownEast Outfitters, a discount furniture and clothing retailer that has expanded into eight states.
If ever the business got in the way of their personal relationships, their credo went, the brothers were to close the doors.
That business philosophy has stayed with the brothers, from the time they began selling liquidated merchandise from the back of a friend's delicatessen in Provo to growth that today includes 47 stores and more than 500 employees.
The brothers joke that their mother had hoped someone in the family, namely her sons, would become doctors or lawyers rather than join the ranks of the family's long line of retailers.
Charlie, 45, came closest by serving as the company's general counsel. But the two other brothers have stuck with the family tradition, with Bill, 43, serving as company vice president of home furnishings, and Jonathan, 37, as vice president of apparel.
"Our motto is high style, low price," said Jonathan. "It isn't just a slogan. We're good at finding brands that resonate with our customers."
The Freemans say they had no intention of becoming retailers, growing up in metropolitan New York. But true to other entrepreneurs in his home city, Jonathan, then 17, started reselling liquidated brand-name clothing out of the trunk of the family's old red Toyota Corolla.
The concept wasn't new back East, but Charlie and Bill thought the idea might be a good way to make money in Provo, where they were attending Brigham Young University. Jonathan provided the clothing, while the two older brothers brought the merchandise West, hand tagging each item as they drove.
Even though they had no long-term career ambitions, their father insisted that the brothers start out right. They incorporated, got a tax ID and started working together. It wasn't long before they moved into a 300-square-foot store near the BYU campus. Sales were calculated from a simple cash box. The dressing room was makeshift curtains, and clothing was piled on the floor. But the discounts were substantial for name-brand liquidations, factory seconds and store returns.
"There just weren't any retail outlets at the time," said Jonathan. "It was a new concept in the West."
By the end of their second year, the brothers had six locations.
Still, their thrift influenced how they ran their company, which was — and continues to be — debt free. Profits are reinvested, and expansions have been self-funded.
Another cost-cutting move was to open stores on a 12-month trial deal. Under-performing locations were closed. Some markets were tested by opening kiosks at malls. Profitable locations were converted to permanent stores.
By 1996, about the time Bill married and purchased a home, the family began selling discount furniture. Some stores had a blend of furnishings, home accessories and clothing.
The clothing line became so popular that the family started its own private label, offering stylish, modest clothing and smart layered pieces for their more conservative customers.
Over time, the brothers decided they needed more expertise to get beyond operating purely on hunches. So they pulled a network of friends into the business. The company's chief operating officer, Rich Israelsen, had served an LDS Church mission to Uruguay with Bill and was his roommate at BYU. CEO Klane Murphy was a college roommate of Charles and a boyhood friend.
"We have a consensus approach to running the company," said Murphy. "We don't want conflict within the management team."
DownEast has expanded its merchandise and clothing line to the point that it needs aids to track operations. At the Salt Lake City headquarters, a white board lists two clearance outlets, nine home furniture and clothing centers, 11 clothing locations and 25 apparel stores selling its private label.
Company officials pride themselves on returning some of the largess they've received. In an effort that hits home, DownEast and its employees donate to programs dedicated to finding a cure for cancer. The Freeman's mother, Claire, is a cancer survivor, as is the wife of CEO Murphy.
Employees also regularly contribute to Choice Humanitarian, with some also working on a water system and school for a village in Guatemala. This month, the company donated $5,000 worth of clothing to The Road Home,a nonprofit group that assists individuals and families experiencing homelessness along the Wasatch Front.
Twitter: @DawnHouseTrib —
DownEast Outfitters
What it sells • Name-brand, private-label apparel, home furnishings, accessories at a discount
Stores • 47 locations in Utah, Colorado, California, Idaho, Arizona, Washington, Nevada and Wyoming
Brands • DownEast Home & Clothing stores; DownEast Basics clothing stores; two clearance outlets
Founded • 1991
Headquarters • 375 W. Hope Ave., Salt Lake City
Employees • 500