The stock price plummeted from a high of more than $75 to $17.50, but not before Eddie cashed out almost $30 million worth of stock. Less than three years after going public in September 1984, the entire scheme was close to unraveling completely. While actual profits from 1980-83 rose about 13% a year, reported profits rose nearly 171%. In order to make it look like store profits were increasing, he simply stole less. And as if all that wasn’t ballsy enough, Antar decided to take his chain public in 1983. He tricked auditors performing inventory counts by shifting merchandise between stores and by passing empty boxes off as real inventory.
Antar, through college to become an accountant, then hired him at Crazy Eddie to help cook the books. Almost from the beginning Antar skimmed profits, cheated wholesalers, and lied to customers. What happened: Turns out the secret to Antar’s success was simple – he was a total crook. Carroll’s frenetic, absurdly comic delivery was so effective many people assumed he was Crazy Eddie. But more than their prices or goods Crazy Eddie was known for their advertising, which featured a hyper pitchman named Jerry Carroll. The chain specialized in discount electronics, but later expanded into music sales.
It was run by Eddie Antar, whose high-pressure sales techniques and accounting creativity turned that one store into a regional chain covering four states and 43 locations, and with more than $300 million in sales. What: Crazy Eddie, one of the most famous brands in the New York Tri-State area, started in 1971 with one location in Brooklyn.
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