The golden age of downtown department stores was fading fast by the 1970s. Across the Midwest, once-iconic retail giants shuttered flagship locations or downsized as shoppers flocked to the suburbs. Surprisingly, though, a few new downtown department stores emerged amid the decline. One of them was Elder-Beerman in Richmond, Indiana. Unfortunately, it was demolished late last year.
The story of Richmond’s Elder-Beerman began with tragedy. On the afternoon of April 6, 1968, a muffled boom cut through the quiet just as the State Theater’s matinee began. Moments later, a powerful explosion tore through downtown, lifting Marting Arms Sporting Goods off its foundation and obliterating it in an instant. A massive fireball followed. It engulfed Vigran’s Variety Store in flames1.
Thirteen fire departments from Indiana and seven from Ohio rushed to battle the explosion. The battalions fought the massive blaze for five hours, unleashing 10,000 gallons of water per minute. Ten bodies were recovered early on2, but the disaster ultimately claimed forty-one lives, injured over a hundred people, and caused $10 million in property damage. The blast’s force was so intense that it shattered windows five blocks away.
As the dust settled, officials discovered that nine buildings had been completely destroyed. Twenty more were forced to be condemned. Initial investigations pointed to a gas leak3, but whatever the cause, the explosion left Richmond in ruins. If there was any silver lining to the disaster, it was the renewed hope for a bold comeback. Downtown Richmond had been struggling even before the tragedy, especially after the Gateway Shopping Center and Richmond Mall opened on the city’s east side in the early 1960s. Fortunately, formal recovery plans began to take shape in 19704.
Officials determined that the city’s resurgence depended on the creation of a four-block promenade designed by local architects R.W. Clinton Associates. Their vision sought to transform Main Street -part of US-40, the National Road- into a pedestrian mall by diverting traffic to side streets. The new space featured patterned brick walkways, fountains, reflecting pools, lush greenery, and an amphitheater. Overhead, modern toadstool-shaped lights cast a glow over what officials hoped would become the revitalized heart of the city5.
Plans for Richmond’s promenade were backed by the Merchants Mall Committee, a body of progressive downtown businessmen6. “We feel there is a definite need for it,” said the director of Richmond’s Redevelopment Department. “We don’t feel the mall will be a panacea, that it will be a cure-all, but it will be a start. Then, with merchandising and the right kind of promotion, the downtown can become a competitive place for the shopper’s dollar7.”
Many agreed, and Richmond’s promenade officially opened in 1972. More than 10,000 people -about a quarter of the city’s population- strolled through downtown during its dedication8! A host of merchants reported booming sales and hailed the project as a success. Carousel Shoes doubled its revenue, and First National Bank officials described a “tremendous” surge in the downtown economy. Heritage Books and Gifts called the growth “unbelievable,” while Pete’s Pantry praised the mall as “fantastic9.”
The pedestrian mall was an initial success, but it still lacked a key element- an anchor store at the epicenter of the explosion. In 1972, officials announced that Elder-Beerman would fill that void by opening a full-line department store10. The chain’s roots traced back to 1883 when Thomas Elder, W.H. Hunter, and Russell Johnston founded the Boston Dry Goods Store in Dayton, Ohio. As Elder & Johnston, the business merged with Arthur Beerman’s Beerman Stores in 1962.
Richmond’s Elder-Beerman was set to make history as the company’s first location outside Ohio and its twelfth branch overall. Designed in part by local architect Dale Jacobs, the structure was to be a two-story, explosion-proof department store paired with a four-story parking garage connected by a sky bridge11. The full-line store promised to bring a major economic boost, but opening in a downtown location -especially in a place as small as Richmond- was a gamble. “It’s tougher to make a decision in this day and age to put a store in any downtown,” admitted company president Max Gutmann, “let alone in a small town12.”
Despite the company’s reservations, Elder-Beerman broke ground on its new store on March 14, 1973. The ceremony drew a hundred spectators and participants, including company chairman Jerome Goldman, Richmond Mayor Byron Klute, and members of the city’s common council and economic development commission13. “We hope now that a lot of downtown merchants will expand, get aggressive, and bring lots of people to the downtown to make this a really viable downtown14,” Gutmann implored.
Fortunately, there was no need for concern. The $1.5 million store ignited a second wave of revitalization in the city when it opened in February 197415! No less than future Indiana governor Robert Orr hailed the massive Elder-Beerman as the “jewel in Richmond’s crown16,” and it quickly became the focal point of the downtown mall. Instead of heading to Dayton or Indianapolis for their retail needs, shoppers finally had a premier destination right in the heart of Richmond.
Elder-Beerman’s competitors were impressed and appreciative too. Downtown stalwart Knollenberg’s even sang Elder-Beerman’s praises! “The advertising Elder-Beerman can generate is so much more than we could produce,” an official told the Palladium-Item. “More people see it and come downtown,” the company continued, “and many of them shop at the other stores while they’re here. I’d say the new customers we’ve gained because of Elder-Beerman have more than made up for what we may have lost17.”
Elder-Beerman’s commanding presence continued to dominate Richmond over the years. In 1989, the store underwent a $1 million renovation that added a full cosmetics line and expanded its sportswear department after Knollenberg’s completed a similar project. “Richmond is indeed fortunate to have both a local department store and a major chain serving its community, keeping downtown alive and viable which is certainly not the case in many other cities, large and small, in both Indiana and the United States as a whole,” Max Gutmann said in a press release18.
Elder-Beerman might have been thriving in Richmond, but the area around it began to struggle as the 1990s rounded into view. The promenade had once given stores like Knollenberg’s a strong reason to stay downtown but, over time, its appeal began to fade. Beyond a simple facelift, little investment had been made since its earliest days. Broken fountains, poor lighting, and rampant vandalism signaled neglect19. In 1990, advisors from the National Main Street program even recommended reopening parts of the mall to two-way traffic to revitalize the area20.
As it turned out, Elder-Beerman was on the brink of its own struggles. In 1995, the company filed for Chapter 11 bankruptcy a year of losses that seemed to tie with the retirement of longtime chairman and CEO Max Gutmann21. Despite the challenges, though, Richmond’s Elder-Beerman was popular and persevered. It weathered the company’s bankruptcy filing and emergence, the end of the pedestrian mall and reconstruction of Main Street in 199722, and the arrival of a brand-new Dillard’s at the Richmond Mall in 199923. That same year, Elder-Beerman marked its 25th anniversary. Its celebration was a testament to the store’s resilience in a changing retail landscape.
Unfortunately, the retail landscape continued to shift as Elder-Beerman stepped into the new millennium. In 2003, the company became the focus of a bidding war between The Bon-Ton Stores, Inc. of York, Pennsylvania, and Wright Holdings, Inc., of Minnesota. Ultimately, The Bon-Ton emerged victorious and bought Elder-Beerman for $92.8 million, or $8 per share, to bring the longtime Midwest retailer under its umbrella24.
The acquisition marked a turning point for Elder-Beerman, and we all know what happened next. Burdened by debt and declining sales as shoppers moved away from traditional department stores, The Bon-Ton announced that it would close nearly 50 locations -including five Carson’s stores in Indiana- in 201825. Just weeks later, the company took an even bigger hit, revealing plans to file for Chapter 11 bankruptcy26. Officials remained hopeful that the Richmond location would be spared27, but those hopes were short-lived.
In April 2018, The Bon-Ton’s bankruptcy auction delivered a grim outcome after only two bids were placed, both from liquidators. With no buyer to keep the business afloat, the company announced that all of its remaining stores, including Richmond’s Elder-Beerman, would close for good28. Over the next several months, clearance signs replaced window displays as liquidation sales took over the 103,000-square-foot building. Shoppers returned, not for the latest fashions or home goods, but to hunt for deep discounts on the store’s remaining inventory and fixtures.
With shelves emptied, lights dimmed, and the doors locked for the last time, Richmond’s Elder-Beerman officially closed during the weekend of August 25, 201829; With the store’s departure, another piece of Richmond’s retail history faded away, leaving a vacant shell in the heart of downtown. Soon, a question arose: what would come next for the space Elder-Beerman left behind?
Officials explored various efforts to repurpose the vacant Elder-Beerman building in hopes of breathing new life into the space. The property was put up for auction and attracted initial interest from eager developers, but no viable plans materialized. In 2024, the vacant building’s fate was sealed when Richmond’s Board of Public Works and Safety approved the mayor’s request to demolish the old store and its aging pedestrian bridge. The destruction began on November 27, 2024.
The future of the site began to take shape once Indianapolis-based developer Flaherty & Collins moved forward with plans to construct a mixed-use building that would bring new energy to downtown Richmond. The project, dubbed “Six Main31,” featured 150 modern apartments and promised to transform the vacant lot into a vibrant new hub32. New housing in downtown Richmond had been demanded for years, and Flaherty & Collins have a successful track record of similar projects in places like Fishers, Brownsburg, and Lawrenceburg33. Hopefully, the project succeeds.
Still, the demolition of Richmond’s old Elder-Beerman is a poignant reminder of the end of an era for downtown department stores. Once thriving hubs of commerce and community, they were more than just places to shop- they were landmarks that shaped the identity of cities and towns for decades. As Elder-Beerman came down last year, it marked the loss of yet another anchor in a rapidly changing retail landscape. The destruction of such familiar buildings tugs at the heartstrings, but it also signals the inevitable march of progress as sleek structures like Six Main rise to take their place. Still, I can’t help but reflect on the pieces of history left behind like Richmond’s landmark Elder-Beerman.
Sources Cited
1 1968 Explosion Timeline (2008, April 6). The Richmond Pallaium-Item. p. 2.
2 (See footnote 1).
3 Kuchta, J. (1968, May 29). Kuchta REport Analyzes Safety Problems Following Downtown Blast. The Richmond Palladium-Item. p. 5.
4 Genrich, M. (1972, June 13). Promenade Dedication Week Plans Told’ Painting Unveiled. The Richmond Palladium-Item. p. 1.
5 Holden, R. (1971, June 30) Money Reported “In The Till” For Mall With Bids Due To Be Advertised July 19. The Richmond Palladium-Item. p. 11.
6 Redevelopment Board Gives Tentative OK To Mall Contract With Architect Firm (1971, June 2). The Richmond Palladium-Item. p. 2.
7 (See footnote 5).
8 Gynn, A.M. (1997, June 30). Promenade fades quietly into history. The Richmond Palladium-Item. p. 1.
9 Genrich, M. (1972, July 2). Merchants Credit Soaring Sales To Promenade. The Richmond Palladium-Item. p. 3.
10 Holden, R. (1972, February 4). Dayton Department Store Coming. The Richmond Palladium-Item. p. 1.
11 (See footnote 10).
12 (See footnote 10).
13 Earth Is Turned For Elder-Beerman (1973, March 15). The Richmond Palladium-Item. p. 23.
14 (See footnote 13).
15 Holden, R. (1974, June 18). Elder-Beermna’s Arrival Helps Spark City Renewal. The Richmond Palladium-Item. p. 65.
16 Lt. Gov. Orr Visits In City To Welcome Elder-Beerman (1974, February 20). The Richmond Palladium-Item. p. 24.
17 (See footnote 15).
18 Renovations show belief in downtown (1989, September 23). The Richmond Palladium-Item. p. 6.
19 Gynn, A.M. (1997, June 30). Promenade fades quietly into history. The Richmond Palladium-Item. p. 1.
20 Mogollon, C. D. (1993, April 5). 25 years of growth, change. The Richmond Palladium-Item. p. 13. Ken Paust, president of Downtown Richmond, Inc.
21 Price, L. (1995, October 18). Elder-Beerman files for Chapter 11 banktupcy. The Richmond Palladium-Item. p.1.
22 Wynn, A.M. (1997, June 30). Promenade fades quietly into history. The Richmond Palladium-Item. p. 1.
23 Scarborough, J. (1999, February 15). Elder-Beerman hits milestone. The Richmond Palladium-Item. p. 1.
24 Elder-Beerman chief to stay after merger (2003, September 28). The Richmond Palladium-Item. p. 24.
25 Shuey, M. (2018, March 4). What’s next for this downtown retailer? The Richmond Palladium-Item. p. A1.
26 Bon-Ton Stores files for Chapter 11 bankruptcy protection (2018, February 5). The Associated Press. NBC News. Web. Retrieved February 23, 2025.
27 (See footnote 25).
28 Shuey, M. (2018, April 19). Elder-Beerman Will Close. The Richmond Palladium-Item. p. A1.
29 Elder-Beerman sets close, auction dates (2018, August 22). The Richmond Palladium-Item. p. A1.
30 Weaver, E. (2024, May 29). Plans to demolish Elder-Beerman building, possibly build apartments, move forward. The Richmond Palladium-Item. Web. Retrieved February 23, 2025.
31 Lane, J. (n.d.). Elder Beerman Apartments Dubbed “Six Main”; Rent Projected Between $1300-1400. KICKS96. Web. Retrieved February 23, 2025.
32 Emery, M.M. (2023, November 15). Developer unveils apartment plans. The Western Wayne News. Web. Retrieved February 23, 2025.
33 (See footnote 32).
This store seems to have bucked the trend of shoppers fleeing downtowns, at least for awhile. And this might be one of the few “pedestrian malls” made from closed-off downtown streets that was even moderately successful.
I hadn’t heard of a successful pedestrian mall until now. Did Fort Wayne have one?
They closed off Calhoun street for a few years starting maybe 1978-79-ish. I think they gave up on it after a few years.
Great article, and as always, excellent research. Just one correction. The article refers to Robert Orr as Indiana’s governor:
“The $1.5 million store ignited a second wave of revitalization in the city when it opened in February 197415! No less than Indiana governor Robert Orr hailed the massive Elder-Beerman as the “jewel in Richmond’s crown16,” and it quickly became the focal point of the downtown mall.”
However, in 1974, Otis Bowen was governor from 1972-80, and Robert Orr was his Lieutenant Governor during his two terms.
Thanks for the compliment and the correction. I’ll fix it!
Outstanding work.
Thank you!!
I was working in corporate management in department store retail (for some of the store chains mentioned!), from 1990 until 2000. Elder-Beerman was probably not making a great leap of faith to rebuild in downtown in the early 70’s, the real abandonment of the downtown retail space started taking place in earnest in the 80’s when the handwriting on the wall could start to be believed, and at that time city governments were making all kinds of wild tax abatement deals to try and keep downtown retail competitive and stores from leaving abandoned buildings in their city centers, all to no avail, but it kept pushing off the inevitable.
So many bad business deals being made, and mergers and buyouts that were NOT successful, in a very short period of time doomed the “moderate-to-better” department store business from the late 80’s on, including multiple chapter 11 bankruptcies and reorgs, with third party equity firms adding tons of debt on to everything while they took their pound of flesh. It will be an interesting book to be written, just concerning the stores I worked for!
The mantra of all these mergers and buyouts was to buy store chains in geographically contiguous market areas, and then slash back office business to concentrate services across all store chains and save millions having one advertising and buying department serving all store chains (and developing eTail for all stores under one department). Stores like Bon-Ton were a good example of why this never worked out. They had the financial purse to buy our chain to facilitate this, only to find out that they were “the tail buying the dog”, so to speak. Their in-house services were both far smaller and far less professional than my store chains, and they were in over their head. They could keep us on so that the work could actually be accomplished, but they were reticent about firing their people (we could easily do their work), because they were the “conquerors”. They ended up going forward running two of everything. This happened almost every time there was a merger or buyout, and those consolidation saving were never realized: store chains just got into more financial trouble!
To J.P.’s point above, the “pedestrian malling” of downtowns has been almost a universal failure, and discredited so many times it’s amusing. I was living in Oak Park Illinois when they decided to do it in the late 80’s, and they killed almost every large chain store, including a Marshall Fields anchor store on the west end of town. They “de-malled” it a few years after. Even years later, in 2024, my city is currently talking about doing this in a busy entertainment area, because they can’t seem to jail or control unlicensed drivers and joy-riding in stolen cars. I just shake my head.
The downtown pedestrian mall is an intriguing concept- especially how and why seemingly every small city in the Midwest rust belt where I live tried it, and the concept completely failed. Ours was pulled out in the mid-90s, just like Richmond’s was. It killed downtown, which has taken decades to come back within spitting distance of what it once was.
Ted, after writing the above, I went back and checked the Oak Park Illinois project, and it basically lasted 15 years before they got the gumption to “un-mall” it and try and bring it back. What I found amazing, was running across “memorial” pages of people of a certain age when the Lake Street mall was there, lamenting it’s loss and how lovely it was during the holidays, especially Christmas! It was killing retail, but for a certain age person, it had a real “fairytale” type draw!
I found the same reminiscences about Richmond!
The first part of 1968 was a explosive time in that area of Indiana; a New Year’s Day train derailment in Dunreith almost blew the little village off the map. I have a copy of a newspaper insert on this disaster, it was a miracle no one was killed.
I went through Dunreith in 1994, and you could hardly tell where the RR tracks had been.
Both the Richmond and Dunreith disasters continue to be discussed by rail and fire service historians alike.
I’d completely forgotten about the Dunreith train derailment!
Actually, the Dunreith-Knightstown area is a little hub of transportation history, as you may know. I wish I had more time back in 1994.
This book has a nice chapter on Dunreith: “When the Railroad leaves Town”/Eastern U.S. by Joseph Schwieterman.
I’ll be sure to check it out. Thanks for the tip!