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Style Stash via Etsy

A Brief History of Members Only Jackets

Style Stash via Etsy
Style Stash via Etsy

While there are few unbreakable rules in advertising, most agencies would advise against using images of Adolf Hitler in association with your clothing brand. Nazi iconography tends to turn off potential buyers.

The exception? Members Only.

The men’s outerwear brand famous for its tablecloth-like fabrics, ribbed bottoms, and shoulder epaulettes was one of the biggest success stories in 1980s fashion—so successful that they actually grew bored with their celebrity endorsements and decided to use their advertising dollars on anti-drug and pro-vote campaigns. Instead of paying for models, the company paid for public service announcements about drug-addicted infants and violence against police officers. During the 1988 election year, they rolled off footage of Hitler as a way of inciting voters to take an interest in the country’s political future. 

Some markets refused to air the commercials, but Members Only and its two owners had built a $100 million clothing empire by bucking trends and defying convention.   

After a stint in the Marines, Herb Goldsmith went to work for his father’s outerwear company, Chief Apparel, in the late 1940s. Packing orders and stuffing inventory full of moth-resistant camphor balls, Goldsmith developed an eye and feel for men’s fashion. (Mostly a feel: Goldsmith was color blind.)

Although his father was content to keep Chief in the Northeast, Goldsmith thought the brand had potential in other markets. He hit the road and sold buyers on sports jackets, eventually enlisting actor Tony Curtis to endorse their products. When he came across Velcro in 1958, he immediately struck a deal for kid’s coats to be fastened with it, knowing that their lack of fine motor skills often left zippers hanging.

Not everything was a success—Velcro wasn’t a smash, and he once passed up a deal with two obscure designers named Dolce and Gabbana—but Goldsmith knew the apparel business.

Following his father’s death, Goldsmith joined with partner Ed Wachtel to buy out the import company Europe Craft in 1961. The two sourced designs from overseas and worked on more daring menswear designs than American companies had been offering. Their Convoy Coat became a big seller; later, they enlisted television star Telly Savalas to help design and endorse a line of suits. Although Savalas was a snappy dresser, his fans apparently weren’t big on buying formal wear; Europe Craft discontinued the line within a year.

By the late 1970s, Goldsmith and Wachtel were being cautioned by their retail buyers that customers were looking for slimmer cuts in their jackets: Young men weren’t responding to the square-shouldered suits their fathers wore.

On a buying trip in Munich, Goldsmith spotted a jacket that had a knitted bottom and epaulettes—the straps on the shoulders common in military uniforms. In New York, he discovered a chintz fabric that was thin, shiny, and came in 40 colors. At the time, outerwear had a muted color palette; the idea of offering a jacket in green or a blinding white was contrarian. And that’s exactly what Goldsmith wanted.

Blending the fabric and design while adding touches of his own—like a strap around the collar—Goldsmith needed a brand identity. While at a country club in Long Island, he noticed a large sign outside of the entrance: Members Only.

Later, he took note that Diners Club cards had a key on their logo; for Members Only, he added a keyhole. It hinted at access and exclusivity, provided you had the good taste to purchase one.

After a few rough drafts, the completed, $55 retail Members Only jacket debuted in 1980. It was a modest success. Retailers couldn’t display as many colors as Goldsmith had available, and he had to petition them to get rid of the typical “pipe rack” display common with most jackets of the time. Members Only selections were displayed in a cascading, tiered rack, so buyers could get a complete look at the design.

Taking note of the free gifts common in cosmetics purchases, Goldsmith also introduced ancillary Members Only items like tote bags and watches to act as a sales incentive. Before long, the jackets were being paired with Izod golf shirts and Levi’s jeans for entertainment attorneys flying from coast to coast; the style was being passed around the country in circles that could prove to be influential. Before long, Members Only jackets were showing up—unsolicited—on movie and television personalities.

Goldsmith still needed to mount a purposeful ad campaign. When he was mulling over a celebrity endorsee, his daughter told him to contact soap opera actor Anthony Geary, at the time a hugely recognizable performer on ABC’s General Hospital. While most men didn’t care about Geary, Goldsmith knew that women frequently drove apparel choices during shopping excursions.

Members Only signed Geary in 1982. In television commercials, he suggested that, “When you put it on … something happens.”

That “something” was a jump to $100 million in sales by 1984. During personal appearances, Geary was mobbed by up to 5000 shoppers and protected by police barricades. Members Only had become a leading brand in outerwear, with Goldsmith adding women’s sizes, more colors, and winter versions with quilted lining. An estimated 15 million men sported the jackets.

Everything was such a smashing success that Goldsmith could take chances. And for his 1986 ad campaign, he would take one of the biggest.

The press that had been assembled to screen the new ad campaign for the hottest outerwear brand in the country didn’t know what to make of it. Musicians and athletes—like Nets star Buck Williams—were ranting about the evils of drug addiction. One spot depicted a police shield riddled with bullets, collateral damage in the drug war. In form and function, they were public service announcements, with a “brought to you by Members Only” button coming only at the very end.

Goldsmith had committed his entire $6 million ad budget to the idea, which was born out of President Ronald Reagan’s high-profile crackdown on drugs. The Members Only spots aired on radio, on television, and in print, minimizing the brand in order to deliver a potent anti-drug message.

"We've done a good job of getting our name known,'' Wachtel told The New York Times in 1986. ''We want to use the fact that we are well known, and see if we can stop people from using drugs for the first time, which is our goal.''

There were some in the industry who thought the two had lost their minds, but in 1987, sales jumped 15 percent. Some individual stores reported increases of as much as 82 percent. Local markets who wanted to support the message even gave free airtime to the company. Goldsmith had struck a perfect balance between community service and commercial success. First Lady Nancy Reagan wrote him a letter of thanks.

The downside of the approach is that it made it difficult for Members Only to return to the comparatively more superficial celebrity testimonials. In 1988, Goldsmith and his ad agency, Korey Kay, decided to build a new campaign around voter registration. In a series of a spots, Members Only reminded apathetic voters that the country's political process is what keeps "idiots" like Adolf Hitler and Joseph Stalin out of power. Footage of German concentration camps were shown. Some found the ads offensive, but Members Only retained their share of the apparel market: More than a quarter of all outerwear sold bore the brand's label.

With Wachtel having retired in 1987, Goldsmith finished a five-year deal with new owners Marcade in 1992. Increasingly, retailers were less interested in fashion and more interested in bypassing labels to source cheap clothing with overseas suppliers. An excess inventory of 90,000 jackets was once bartered for advertising and travel credit.

Members Only never regained the cachet it enjoyed in the 1980s, beginning to pop up as an ironic accessory in popular culture. When Tony Soprano was maybe or maybe not whacked in the series finale of The Sopranos, it was a man in a Members Only jacket who likely did him in. (The ambiguous end was contrary to the brand’s slogan: Fans thought nothing happened.)

Members Only lives on today as a lifestyle brand, the original design joined by modern interpretations. It's unlikely the line will ever again reach the heights it did three decades ago. For customers who shopped the cascading racks in the ‘80s, nothing less than tablecloth fabrics and Joseph Stalin will do.

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Before Bitcoin: The Rise and Fall of Flooz E-Currency
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iStock

In the late 1990s, Silicon Valley entrepreneur Spencer Waxman was in Morocco on holiday when he heard an Arabic slang term for money—flooz—that stuck with him. In the dot-com boom taking place back in the United States, URLs with obscure etymology were popular. When Waxman and partner Robert Levitan decided to co-found a novel way of disrupting the online commerce industry, calling it Flooz.com was almost a foregone conclusion.

What Levitan and Waxman envisioned was a virtual gift certificate that would drive business to participating online retailers, give consumers some sense of security over their private information, and make shopping for stubbornly gift-resistant recipients easy. Rather than merely offering cyber currency, this was a service with purpose.

Unfortunately, it was also one that was doomed to fail.

A screen capture of Flooz.com
Flooz.com

Non-cash currency has been with us since the Chinese used cowry shells to sort out debt for goods and services more than 3000 years ago. In the 1960s, credit cards became an alluring alternative to saving and carrying paper bills. When online retailing exploded in the 1990s, it was only natural that startups would begin to explore virtual payment methods.

At the time, digital transactions were perceived by many consumers to be a near-guarantee of identity theft. Handing a card to a vendor in a closed-loop retail environment was one thing, but the thought of hackers seizing their information once it was entered into the borderless environment of the internet kept many away from online shopping.

As it turns out, that paranoia would turn out to be justified in our current climate of constant data breaches. It was also good for businesses hoping to turn their apprehension over credit card security into a monetized solution. Flooz.com debuted in 1999, just one year after another currency-based URL, Beanz.com, had garnered press. Beanz were a kind of earned points system, with approved transactions gifting customers with redeemable gift vouchers. Flooz took a different approach: Customers would sign up to Flooz.com and purchase gift certificates for specific retailers, which they could then use themselves or pass along to a gift recipient via email.

For businesses, it was a way of driving traffic to sites; for consumers, it was a way to keep credit card transactions limited to one vendor; for Flooz.com, being the intermediary meant taking a 15 to 20 percent cut of completed transactions on the selected retail sites, which ranged from Godiva Chocolates to Barnes & Noble and Tower Records.

To help Flooz.com cut through online marketing noise, Levitan enlisted actress Whoopi Goldberg to be their spokesperson. In exchange for company shares and Flooz.com money, Goldberg led an $8 million ad campaign for radio, television, and print that extolled the benefits of using Flooz.com.

Whether it was Goldberg’s pitch or the concept itself, Flooz.com met with a receptive audience. The company debuted in the fall of 1999, and had opened 125,000 accounts by January 2000. That year, roughly $25 million in Flooz.com money was purchased and used. (In a nod to the impenetrable vocabulary of the internet at the time, the media loved to point out that Beanz could be used to purchase Flooz.)

Bolstered by the attention and early success, Flooz.com was eventually able to raise $35 million in venture capital. Consumers could meet their gifting obligations by emailing a code to their gift recipient without having to waste time shopping. For a time, it appeared Flooz.com would become a leading method of payment for online transactions.

Actress and Flooz.com spokesperson Whoopi Goldberg is photographed during a public appearance
Paul Hawthorne/Getty Images

But it didn’t take long for the seams in the Flooz.com model to show. While gifting vouchers to family and friends was convenient for the gifter, the giftee was stuck with a very limited number of vendors that took Flooz.com as payment. If Amazon, for example, had a deal on a DVD or book that Barnes & Noble didn’t, Flooz users were out of luck. Shopping for a bargain wasn’t possible.

The second and most crippling detail was one Flooz.com was forced to make in order to strike deals with vendors. The company guaranteed its transactions, meaning that it would make good on orders even if Flooz dollars had been purchased via fraudulent means. By the summer of 2001, that commitment became a tipping point. Agents from the FBI informed Levitan that they suspected a ring of Russian hackers had purchased $300,000 worth of Flooz in order to launder funds from stolen credit cards.

This created a paralyzing cash flow problem: As their credit card processor withheld funds until Flooz.com could secure the transaction, people were still busy redeeming Flooz dollars they had already spent. Retailers then looked for Flooz.com to reimburse them. Suddenly, customers trying to pay with Flooz were greeted with error messages that the site was down.

Those issues, coupled with the fact that corporate clients had already started to move away from gifting employees with Flooz dollars, forced Flooz.com to file for Chapter 7 bankruptcy in August 2001. Court papers cited almost $14 million in liability. (Beanz.com was also a casualty of the dot-com bust, when participating retailers processing the points steadily went out of business.)

Levitan rebounded, founding the Pando file sharing network and selling it to Microsoft in 2011 for $11 million. Meanwhile, Flooz.com remains a barely-remembered footnote in e-currency, though it would be hard to chart the rise of digital funds like Bitcoin without it. Like with so many other good ideas, timing is everything.

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Thin Ice: The Bizarre Boxing Career of Tonya Harding
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Al Bello/Getty Images

In 2004, the Chicago Tribune asked Tonya Harding about the strangest business offer she had received after her skating career came to an abrupt end in the mid-1990s. “I guess to skate topless,” she answered. In 1994, the two-time former Olympian became infamous for her ex-husband’s attempt to break the leg of rival Nancy Kerrigan. Although Harding denied any knowledge of or involvement in the plan—which ended with Kerrigan suffering a bruised leg and Harding being banned from the U.S. Figure Skating organization, ending her competitive pursuits—she became a running punchline in the media for her attempts to exploit that notoriety. There was a sex tape (which her equally disgraced former husband, Jeff Gillooly, taped on their wedding night), offers to wrestle professionally, attempts to launch careers in both music and acting, and other means of paying bills.

Though she did not accept the offer to perform semi-nude, she did embark on a new career that many observers found just as lurid and sensational: For a two-year period, Tonya Harding was a professional boxer.

Tonya Harding rises from the canvas during a boxing match
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Following the attack on Kerrigan and the subsequent police investigation, Harding pled guilty to conspiracy to hinder prosecution, received three years’ probation, and was levied a $160,000 fine. (Gillooly and his conspirators served time.) Ostracized from skating and with limited opportunities, Harding first tried to enter the music scene with her band, the Golden Blades.

When that didn’t work—they were booed off stage in Portland, Oregon, Harding’s hometown—she disappeared from the public eye, offering skating lessons in Oregon before resurfacing on a March 2002 Fox network broadcast titled Celebrity Boxing. Using heavily padded gloves and outsized headgear, performers like Vanilla Ice and Todd Bridges pummeled one another on the undercard. In the main event, Harding used her physicality to batter and bruise Paula Jones, the woman who had accused then-president Bill Clinton of sexual harassment.

This was apparently the boost of confidence Harding needed. “I thought it was fun knocking somebody else on their butt,” she told the Tribune. Boxing, she said, could be an opportunity to embrace her self-appointed title as “America’s Bad Girl.”

Harding looked up a boxing promoter in Portland named Paul Brown and signed a four-year contract that would pay her between $10,000 and $15,000 per bout. The 5-foot, 1-inch Harding quickly grew in stature, moving to 123 pounds from her 105-pound skating weight. Following her win against Jones, Brown booked her a fight against up-and-coming boxer Samantha Browning in a four-round bout in Los Angeles in February 2003. The fight was said to be sloppy, with both women displaying their limited experience. Ultimately, Browning won a split decision.

Harding rebounded that spring, winning three fights in a row. Against Emily Gosa in Lincoln City, Oregon, she was roundly booed upon entering the arena. “The entire fight barely rose above the level of a drunken street brawl,” The Independent reported.

Of course, few spectators were there to see Harding put on a boxing clinic. They wanted to watch a vilified sports figure suffer some kind of public retribution for her role in the attack on Kerrigan. Following her brief winning streak, Harding was pummeled by Melissa Yanas in August 2003, losing barely a minute into the first round of a fight that took place in the parking lot of a Dallas strip club. In June 2004, she was stopped a second time against 22-year-old nursing student Amy Johnson; the Edmonton, Alberta, crowd cheered as Harding was left bloodied. Harding later told the press that Johnson, a native Canuck, had been given 26 seconds to get up after Harding knocked her down when the rules mandated only 10, which she saw as a display of national favoritism.

Harding had good reason to be upset. The Johnson fight was pivotal, as a win could have meant a fight on pay-per-view against Serbian-born boxer Jelena Mrdjenovich for a $600,000 purse. That bout never materialized.

Tonya Harding signs head shots on a table
Andy Lyons/Getty Images

There was more than just lack of experience working against Harding in her newfound career. Having been a longtime smoker, she suffered from asthma. The condition plagued her skating career; in boxing, where lapses in cardiovascular conditioning can get you hurt, it became a serious problem. Although Harding competed again—this time emerging victorious in a fight against pro wrestler Brittany Drake in an exhibition bout in Essington, Pennsylvania, in January 2005—it would end up being her last contest. Suffering from pneumonia and struggling with weight gain caused by corticosteroids prescribed for treatment, she halted her training.

In an epilogue fit for Harding’s frequently bizarre escapades, there was remote potential for one last bout. In 2011, dot-com entrepreneur Alki David offered Harding $100,000 to step back into the ring, with another $100,000 going to her proposed opponent. Had it happened, it probably would have gone down as one of the biggest sideshows of the past century. Unfortunately for Harding, Nancy Kerrigan never responded to the offer.

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