idb 2013 client stories

It’s Personal:PROFILES OF OUR REMARKABLE CUSTOMERS

SpecialIssue

JORDACHE ENTERPRISES-Joe Nakash

FEDCAP-Christine McMahon

STATEN ISLAND FOUNDATION-Betsy Dubovsky

RIVER CAFÉ-Buzzy O’Keeffe

GALAXY BRANDS-Jon Lavallee & David Scharf

VITA COCO-Michael Kirban

FROM SIX EXTRAORDINARY LEADERS

IDB shares these exclusive stories with you

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24-27STATEN ISLAND FOUNDATION-Betsy Dubovsky

RIVER CAFÉ- Buzzy O’Keeffe

GALAXY BRANDS-Jon Lavallee & David Scharf

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JORDACHE ENTERPRISES- Joe Nakash

FEDCAP-Christine McMahon

VITA COCO-Michael Kirban

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01REMARKABLE STORIES OF IDB BANK’S CUSTOMERS

JORDACHEENTERPRISES

HUMBLE BEGINNINGS, AN UNSTOPPABLE ENTREPRENEURIAL SPIRIT

Joe, Ralph and Avi Nakash came to America from Israel in the 1960s with change in their pockets and an intuitive understanding of the American dream. They soon took jobs in the stock rooms and on the sales floors of Manhattan clothing stores, which turned out to be the first rung up the ladder to remarkable success. Their ticket: an entrepreneurial spirit, the willingness to take chances, and a sharp eye for opportunities.

JORDACHE ENTERPRISES

CEO

Jordache Enterprises Midtown Manhattan, New York City

Joe Nakash

SHAULNAKASH

ARIELNAKASH

DAVIDNAKASH

STEVENNAKASH

01REMARKABLE STORIESOF IDB BANK’S CUSTOMERS

JORDACHEENTERPRISES

Through all the changes in our business, and at times when no banks were lending money to anyoneIDB always had our back. They understand what drives us.

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JORDACHEENTERPRISES

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What is now Jordache Enterprises – an international conglomerate of apparel, hotels, real estate, aviation and agriculture – originated in 1969, when the brothers opened their own clothing store specializing in brand-name jeans at a discount. Within a few years, the business expanded to four stores, but they also saw an opportunity on the manufacturing side, based on the booming designer market in Europe, where jeans were becoming the height of fashion.

The timing was perfect, as tastes in jeans in the U.S. shifted from old-line established brands to big high-

end names. To distinguish themselves in the era of Studio 54, the brothers plowed a quarter of their annual sales volume and loans into a provocative TV ad campaign – which was at first rejected by the networks but aired by independent New York stations. Seemingly overnight, Jordache Jeans surged to popularity, and the networks came around too.

“We saw a vacuum in the market and filled it,” says Joe, the eldest brother, who not only produced the first commercials but also directed them without any previous experience. “This was the height of

FROM JEANSTO GLOBAL CONGLOMERATE

01 Rob Spiegelman and Eddie Benaderet from the Jordache team with their IDB banker, Howard Weinberg

02 Lobby signage at Jordache headquarters

03 The Nakash brothers with Henry Kissinger

04 The Versace Mansion, now owned by the Nakash family

05 The Nakash family has expanded into the aviation industry

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mass-market brands, and we were going to be an important brand, providing a quality product at a quality price.”

Over the years, the company expanded its reach through licensing, and today designs and manufactures a wide variety of denim, apparel and accessories for a number of leading brands, including private label for U.S. Polo Association. Through their initial success, the Nakash brothers also expanded into real estate, aviation, maritime ventures – and even solar panels and food items like olive oil.

And now members of the second generation have joined the business, taking responsibility for major business segments and functions.

“We’ve always looked beyond apparel and beyond just tomorrow,” Joe explains. “The formula for our success, and our motivation, is simple: Never sell, only buy, and think in terms of generational growth. The ups and downs over 10 years are nothing. It’s always for the next generation.”


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FEDCAP

SUCCESS:BEING PROUD OF WHAT YOU DO AND IN CONTROL OF YOUR OWN DESTINY

In 1935, a chance meeting of three men in New York City’s Times Square helped to change the world for thousands of people.

The three, World War I veterans with physical disabilities, had struggled to make ends meet during the Great Depression. Shut out of the workforce, they set out to change misperceptions – by proving that people with barriers could be productive workers. They founded the Federation of the Crippled and Disabled, based on the principles of work, dignity and achieving economic independence – the first organization in the country run by, and providing services to, people with disabilities.

CEO

Fedcap Offices Manhattan, New York City

FEDCAPChristine McMahon

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Today, 80 years later, Fedcap Rehabilitation Services honors this distinguished history. “We’ve made a deep and lasting impact in the field of vocational rehabilitation, and in the lives of tens of thousands of individuals and their families,” says Christine McMahon, Fedcap’s CEO.

Each year Fedcap’s range of services – from detailed evaluations, vocational training, job placement and counseling services, as well as employment, support and advocacy programs – help more than 40,000 Americans overcome obstacles, rebuild their lives, and find and keep meaningful employment.

“Our job is to level the playing field for people in wheelchairs, people with visual impairments, people with intellectual barriers, people who have difficulty speaking English and many other barriers,” says Christine. “The

accommodations by employers are usually very simple and inexpensive, but the payback in loyal, hardworking employees, and the morale building and cooperation throughout the organization, are immeasurable,” she adds.

Helping employers find great employees is critically important to their success. “We take pride in our robust and thorough evaluations and employee prep-aration,” Christine explains. “You could say our people are ‘road tested’ so employers have the advantage of hiring people who are sustainable.”

In addition to carrying out an ambitious mission, another chal-lenge for Fedcap is a changing economy and changing expectations for non-profit organizations as government funding continues to shrink.

“We have a saying at Fedcap that ‘if you’re not growing, you’re shrinking,’” says Christine. “It’s not an option to stand still, so we set a growth plan to outrun turbulent times, a bold plan for a non-profit,” including both geographic and program expansion. Even in the last four years, Fedcap’s employee population has grown from 1,200 to 2,000.

“We’re really motivated and passionate about what we do,” explains Christine. “Work is not just a job, it’s central to who we are as people,” she explains, “and this is especially true for people with disabilities. Success is being proud of what you’re doing and being in control of your own destiny. We love seeing this pride in the faces of the people we help.”

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We knew IDB was right for us when they talked in common sense ways and gave us common sense solutions to advance our goals.

A banking relationship is critically important to us, especially as we grow, and we found a partner in IDB.

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FEDCAP

01 Ms. McMahon speaking at an event

02-03 Fedcap programs in action

04 Ms. McMahon with IDB Banking partner, Michael Paul

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VITA COCO

A BAR CONVERSATION LEADS TOA SMASHING CONSUMER SUCCESS

Astute entrepreneurs can “see” opportunities just about anywhere. Ten years ago, childhood friends Ira Liran and Michael Kirban began a friendly chat in a New York bar with two young women from Brazil – which led to a classic “aha” moment.

VITA COCOMichaelKirban

CEO

Vita CocoManhattan, New York City

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VITA COCO

When asked what they missed most about their country, the ladies said “agua de coco,” which they called the most nutritious and delicious drink in the world. Soon, Ira hopped on a plane and learned that the coconut water phenomenon was real. When Michael joined him, they got down to business with a plan to bring coconut water to the U.S.

“Coconut water didn’t exist here, but it was massive in Brazil,” says Michael, who was a software developer and had never been in the beverage business before. At the time, Vitaminwater was the only alternative to sports drinks, so the market was wide open. Thus, Vita Coco was born, the first coconut water in the U.S.

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But that didn’t mean it was a smooth launch. With a focus on production, but no knowledge of distribution and FDA regulations in the U.S., Michael had to sell their initial run in the Bahamas, door-to-door from the backseat of a rented car.

Soon, however, they regained their footing, and six years after hitting the scene in Brooklyn, Vita Coco dominated the category with a 60% market share. Today it’s available in more than 75,000 stores in 13 countries around the world.

“We crack 1.5 million coconuts a day to keep up with demand,” Michael says, noting that coconut trees are sustainable year-round. “We’re totally motivated by our consumers, who enthusiastically love the product.”

One of those adoring consumers happened to be pop icon Madonna. “We heard she was talking about Vita Coco at her concerts, but we didn’t have the money to develop an ad or endorsement campaign,” Michael says. “So we asked her manager if she’d be interested in investing and, to our surprise, she agreed.” That led to singer Rihanna coming on board as a spokesperson, along with additional celebrity investors like actors Matthew McConaughey and Demi Moore.

Yoga instructors and trainers have touted Vita Coco because it’s a great source of potassium, which drives hydration, making the health benefits a major attraction. And since coconut trees are so productive all year

long, Vita Coco has become an important employer in countries where opportunities have been limited.

“Before our factory in Brazil was built, there were very few jobs in the community. Now we’re employing the majority of the people in the town, which has lifted spirits and disposable incomes,” Michael says. “We’ve also launched the Vita Coco Outreach Program through which the company is helping to fund a sanitation project, an education program and even a tuberculosis hospital in places like the Philippines, Sri Lanka and Brazil.”

When we were unproven and needed working capital to survive, IDB took a chance on us when no other bank would.

They’re incredibly flexible even today – very special and personal.

01-03 Tropical décor at Vita Coco’s headquarters

04 Mr. Kirban with his IDB banking partner, Louis Barone

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04REMARKABLE STORIESOF IDB BANK’S CUSTOMERS

RIVER CAFÉ

A DREAM 12 YEARS IN THE MAKING, AND STILL GOING STRONG

The River Café opened in June of 1977 in an abandoned neighborhood by the Brooklyn docks – desolate except for trucks waiting to enter the piers. When Michael “Buzzy” O’Keeffe first “found” this spot – barren and devoid of life – he didn’t see a chaotic waterfront that lacked any civility, he saw wonderful possibilities and the oasis he had been searching for.

RIVER CAFÉBuzzyO’Keeffe

River Café Dumbo Brooklyn, New York City

OWNER

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RIVERCAFÉ

It took him 12 years of pestering the city before he was granted the building permits he needed. It was 1974, and New York was teetering on the edge of bankruptcy. Friends, business associates and government officials told him he was crazy, and every bank turned him down for loans. Not one person said it would work, he says. But with uncommon resolve, he kept pushing forward, and never doubted his vision. And when the restaurant finally opened, it was an immediate success.

Buzzy, a dapper New Yorker and now a celebrated restaurateur, was a waiter at Schraft’s as a kid. As a young man, he began throwing elegant parties at his modest home near the Bronx waterfront – what he called “a poor man’s paradise” – and he just kept doing it at better and better venues. He has always strived for perfection.

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The intent from the beginning was to serve some of the world’s finest food, with professional service, in a warm and relaxed atmosphere. “There is no compromise with quality; every item has to be the very best,” Buzzy explains. “We were the East Coast forefront for the new American cuisine, searching out the finest and purest ingredients in every aspect.”

But the most desired goal in building a great restaurant, he says, “is to create the most wonderful setting possible – so the customer is transported to a beautiful, peaceful and very special place. I believed I could create something special, an oasis in New York.”

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In fact, the River Café draws more New Yorkers and visitors into Brooklyn than any entity since the heyday of Coney Island. And with its decades of success – and countless awards – it anchored the redevelopment of the Brooklyn waterfront that millions enjoy today. It’s also been called “the Harvard Business School of the culinary world” by Bryan Miller of The New York Times, having produced many culinary firsts and world-class chefs.

We’re all glad Buzzy O’Keeffe couldn’t take no for an answer.

01 The Manhattan view from the River Café

02-03 Café employees prepare for the evening

This is the way we’ve done business over the years, your word is your bond. IDB understands this time-honored tradition – the importance of trust. That’s why IDB is my banking partner.

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GALAXY BRANDS

JONLAVALLEECFO

DAVIDSCHARFCOO

Galaxy HeadquartersMidtown Manhattan, New York City

David Scharf& Jon Lavallee

NICE OFFICES & THE HIGH-FLYING ORBIT OF GALAXY BRANDS

Galaxy Brands has a diversified portfolio of consumer brands generating over $700 million in retail sales. The company’s branding expertise, retail relationships and strategic partnerships create significant value for its partners, who design, manufacture and distribute products to retailers around the globe.

Flash back three years ago, however, when CEO Eddie Esses got under way with a group of licensees and a dream. They didn’t even have an office to call their own or an infrastructure in place, even though they were lining up million-dollar brands.

GALAXY BRANDS

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GALAXY BRANDS

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“Essentially, we incubated from nothing and we’re glad those growing pains are behind us,” says COO David Scharf. “With backing from the renowned Carlyle Group (where David and CFO Jon Lavallee used to work), it’s gratifying to see everything coming together – from our beautiful new offices to a cohesive team of smart people who are dedicated to growing this business.”

Brands in the Galaxy orbit include AND1, an innovative footwear and apparel brand in all things basketball; Avia, a progressive training and running brand focused on innovation and technology; and Nevados, with hiking products built for durability, comfort and everyday style. In a big recent move, the Galaxy team expanded from sports-related products to acquire Linens ’N Things, still well-known for providing fashionable, affordable home goods, but now without the stores.

Galaxy has indeed come a long way in a short time, thanks to their drive, their focus on cohesive brand messaging and “our ability to make our brands relevant and to create demand, even among many well-known competitors,” says David.

IDB has a comfort level with the retail business, and it’s clear they want to grow with us. They’ve been phenomenal. We never have to worry about our banking partner.

“We take pride in our hands-on approach,” adds Jon. “We don’t just maintain our relationships with our great partners, we have the experience and industry knowledge to assess potential new partners and growth opportunities, and to elevate the right brands with innovative advertising and promotion – in both traditional and new media platforms.”

A bunch of professed “sports nuts,” with backgrounds ranging from fashion to finance, Galaxy’s management team gets involved in every segment of retail production, promotion and distribution, “because great brands are made long before the point of sale,” David says.

AND1 is a case in point. In 1993, the brand set out to change the landscape of basketball, and succeeded – one of very few to become part of the lexicon of the game, with an aggressive, in-your-face approach to product design and brand marketing.

Today, under Galaxy’s management, AND1 is a brand relentlessly committed to freedom of expression and the quest for greatness on and off the court. Through the world-traveling AND1 Live Tour, sponsored events and three NBA endorsers, AND1’s reach is at once grassroots and global.

That same optimism is now being applied to Linens ’n Things, now poised for a comeback with substantial new financial backing under Galaxy’s proprietorship. “With its rich history of providing a broad assortment of high-quality, value priced home products, we plan to leverage this heritage both in-store and online,” says David.

Once again, with the Galaxy Brand touch, you just can’t keep a good brand down.

01 Mr. Scharf and Mr. Lavallee with their IDB banking partner, David Herzog

02-03 The Galaxy Brand’s showroom

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STATEN ISLAND FOUNDATION

COMMUNITY, COMMUNITY, COMMUNITY

STATEN ISLANDFOUNDATION

BetsyDubovsky

Executive Director

Snug Harbor Staten Island, New York City

It’s a simple mission: improve the quality of life in Staten Island. And that’s what The Staten Island Foundation has been all about since its founding in 1997 – since then contributing more than $53 million to help local institutions thrive.

Funding priorities have been education, human services (including health, youth development and housing), arts and culture – and, after Hurricane Sandy, community recovery. Increasingly, the Foundation is focused on building the capacity of non-profit grantees that reach the full range of faiths, cultures, ages, and racial and ethnic groups.

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STATEN ISLAND FOUNDATION

“We support a Staten Island that is a diverse community of tolerant, engaged neighbors, where all residents – especially the least advantaged – have a chance to maximize their potential and improve the quality of their lives,” says longtime executive director and Staten Island resident Betsy Dubovsky.

In a time of tight budgets, however, these objectives are easier said

than done. “We always need more money to give and have to decide the best use of the funds we have,” Betsy says.

This was especially true after Hurricane Sandy hit Staten Island. “We never had a disaster of that magnitude before,” Betsy explains. “It’s been an extraordinary time, but we managed to raise $1.5 million for non-profit organizations that are

still helping people get their lives back.” IDB also was a contributor, “going above and beyond its work as our investment manager.”

Another Foundation priority is the Tackling Youth Substance Abuse (TYSA) Initiative, a cross-sector coalition with the ultimate goal of decreasing the use of alcohol and prescription drugs on the Island.

“Our aim is to build strong public awareness of the urgent need to

tackle youth substance abuse, help align current efforts and fill necessary gaps, and create a strong strategic framework for improved collective impact,” says Betsy. “Making sure that everyone working on the issue is moving in the same direction is a model we can use again.” The coalition spans city and state agencies, treatment and prevention providers, youth development organizations, pharmacies, law

enforcement, schools, hospitals and other medical professionals, philanthropy and more.

Why the urgency? “Because Staten Island has the highest proportion of youth binge drinkers and the highest proportion of youth using prescription pain relievers in the city,” says Betsy. “The effects of this scourge are devastating for our youth and their families. The need for action is urgent.

The well-being and future of our community is at stake.”

Known as a catalyst, the Staten Island Foundation enjoys its greatest reward when the organizations it supports are proudly realizing their goals and objectives. It boils down to this, says Betsy, “We’re passionate about helping the community help itself.”

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01 Snug Harbor Cultural Center

02 The Staten Island Foundation aided the community with Hurricane Sandy relief efforts

03 The Verrazano–Narrows Bridge

IDB is a great partner for us. We trust them and value the choices they’re making on our behalf. IDB has a presence in our community, so if they succeed with us, they know they’re giving back to the community.

IDB Bank is a registered service mark of Israel Discount Bank of New York. Member FDIC.

idb 2013 client stories

Documents

jordache jeans

jordache headquarters03

jordache team

nakash brothers

idb banker

massmarket brands

avi nakash

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