Breaking News
Morry's Liquor on the Rocks
Ken Rabin, Morry's of Naples
Photo by J.E. Matthews
(LONG BEACH - May 11, 2009) -- Morry’s of Naples, a pillar of the community since 1938, is facing foreclosure and attempting to create a new venture that would involve establishing a downtown Long Beach presence.
According to owner Ken Rabin, a “stay of relief” court hearing is scheduled for May 18 to determine if he can buy time to involve investors in a new business plan that would see Morry’s relocate or possibly remain in Naples and expand into downtown.
Potential investors are invited to a “VIP Event” Thursday, May 14, at 6 p.m. at their 5764 E. 2nd St. store in Naples. Rabin’s sister, Annie, said in an e-mail to the Beachcomber that “In a nut shell, it looks as if we plan to create a new company, retire most of the past liabilities and begin something fresh and new with much potential for profits and equity growth.”
Persons interested in participating in the new venture are encouraged to contact Rabin at arabin@morrys.com or call (562) 433-0405.
Following is an exclusive question and answer session the Beachcomber recently conducted with Ken Rabin.
How did Morry’s get started?
It was begun by my grandfather Maurice Rabin, in 1938. When Prohibition was repealed, he opened his own shop which specialized in wines, liquors and gourmet for the everyman. He was among the first to broker and sell wines in Southern California.
Customer service was his key objective. I have heard so many glorious stories of him lending folks money and giving them product on credit. During WWII, he would cash checks and loan money to soldiers in transit, not knowing if he would every get paid back. Our family's objective has always been that the customer comes first.
Morry would work literally 18 hours a day, and continue to contribute and donate to all charities and non-profits, something we continue to this day. Sometimes I feel that we "donated" ourselves into these economic problems.
When did you and your sister, Annie, get involved?
I started working in the shop at age 10, working for 25 cents an hour bagging ice, dusting, and helping where I could. My real involvement began about 20 years ago. Annie has been involved for about four years. Together, we have been struggling against a tide of economic turmoil and staffing issues which continue to drag on the business.
We have been very fortunate, over the years to have great employees. We would always treat our staff as extensions of our family. Most appreciated our rare generosity and nurturing ways. Unfortunately, though, some have taken advantage of us.
What were the store’s greatest years in terms of volume?
The greatest volume had occurred after we made our changes about four years ago. Business spiked about 60 percent in one year. But because of my former staff and their inability to focus on the core business (and my lack of oversight), business began to falter. The downturn was gradual, so it was difficult to recognize at the time.
Then more places began selling similar products, we couldn't sustain our growth, and there began a self-fulfilling prophesy of decline.
Who is your greatest, local competitor?
Our greatest competitor is not a single store, but the mindset of the consumer, that they need to buy everything in one location.
When did you start to shift away from beer sales and why?
I love beer, and certainly didn't want to get away from it. Our first beer cooler went away when we built out the wine bar. The second beer cooler went away when we were in the process of building out a special kitchen for our chocolate maker. My younger staff was so focused on wine sales they neglected the potential of beer sales.
In hindsight, there should have been a greater effort to keep a focus on beers.
When did you start the wine bar and non-alcohol-related gift sales?
We began the wine bar about four years ago. It was all about the need to reinvent the business. What many folks don't realize is that for 20 years, this was a business on decline. For 10 years we weren't breaking even and needed to borrow to cover payroll.
Many folks knew of Morry’s but it was usually as that place they would drive by on their way to someplace else. Or, that place they would come occasionally to for a gift or pick up something they forgot at the market.
So we really had to reinvent ourselves. We really needed to take a big risk. We needed to turn ourselves from being a liquor store of convenience, into a true destination point for a combination of European class and culture, East Coast chic, and West Coast funk, all wrapped around wine, wine education, wine lifestyle and gourmet for the everyman and woman.
We needed to get people's attention … "shock and awe" folks to recognize us. Some of the gift items really didn't belong in a wine shop, but overall, most worked out. The wine bar is a good example of success. It packs out every evening, and the customer base is such a cross-cut of our community. It really is a wonderful site to behold ... folks from all different social, economic and cultural backgrounds enjoying each other's company. Where in Long Beach can you find this?
Why did you stop carrying name brand liquor/wine items?
We stopped carrying many name brand products, not out of choice but out of economic necessity. We couldn't afford to carry everything, especially items that were often being sold below our cost at huge discount stores as loss-leaders. So, we chose to focus on the unique brands which were usually better in quality, less expensive to the consumer and we still made a profit.
What has the public’s response been to these changes?
Mostly very positive. Usually those who know the difficulties of owning your own business, who know the need to reinvent ones self in order to remain viable and be given a future, have been overwhelmingly supportive and empathetic to our growing pains.
Of course, there are many people who miss the old Morry’s. And to a degree, so do I. But without local support, we couldn't afford to maintain the old Morry’s.
How has the recession entered into the picture?
The recession has definitely hurt our business. I would say that our retail is down about 60%. But because our wine bar is doing so well, we are netting about the same. But because sales are so low, and profit is non-existent, we have constantly been "eating" into our inventory which has restricted our ability to sell. The selling of collections and consignment is an example of alternative revenue builders.
Why are attempts being made to expand the store’s operations downtown if the “mother ship” is faltering?
For the longest time, we have felt that downtown is where the new variation of Morry’s should be. In a 3000-square-foot prototype, the focus will be on the wine bar with a small retail presence. It will allow us to be lighter on our feet, and be in an area where most of our customers tend to be coming from.
We would also love to remain in this part of town. Unfortunately, the building is too big, with too much overhead to maintain, and too much debt. Downtown [interests] would like to see a Morry’s there; one gentleman has said that he would like to partner up with us in this endeavor.
Is your Naples building still up for sale?
We own it and have a debt on it, which is held by an investor with a local trust company. Unfortunately, as I have been told until now, their intent is to drive us into foreclosure. We would love the opportunity too refinance into a better loan and retire this debt, but as of now we haven't been able to manage this. The property is still for sale and I have envisioned the possibility for a developer to come in and develop these properties.
How have the banks responded to your calls for assistance?
No luck. SBA loans are impossible to get. Also, our debt to equity is not high enough in these very conservative times of lending.
What can the public do to help you?
I guess, pray for us. And realize that what we created here at Morry’s was meant to be a special place for all in Long Beach to enjoy and appreciate. We spent our last dime to create a unique retail environment. Otherwise, contact your politicians to try to find ways to support "Main Street" Long Beach.
What folks can do is to make the effort to shop and dine locally. You will not only get better quality and service, you will directly be benefiting your community.
If you could turn back the clock, what would you do differently?
I keep asking myself this often. I would have gone more slowly with the changes. Of course this is hindsight. At the time, I felt as if I was with a herd of elephant. If we stopped midway, I was fearful that we would have lost everything we had already invested and I would have been stampeded over.
Also, at the time, we did have people who were seriously discussing the possibility of investing with us. Still, I should have slowed down and waited until the investment capital materialized, before pushing so aggressively in the transformation.
If Morry’s closes before you can get the situation turned around, what would you do career-wise?
One day at a time. If Morry’s closes, we plan to have one downtown. Wine and liquor is in my blood.
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