Mar 17, 2015 In 1932, Harry Watanabe founded a gift shop called the Oriental Trading Company. Today, it is a million dollar business that ships gifts and novelties all over the world. By 1977 it was the biggest business of its type and absolutely dominated industry and that is when Terry Watanabe (pictured), son of Harry, took over the business.
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In 1932, Harry Watanabe founded a gift shop called the Oriental Trading Company. Today, it is a million dollar business that ships gifts and novelties all over the world. By 1977 it was the biggest business of its type and absolutely dominated industry and that is when Terry Watanabe (pictured), son of Harry, took over the business.
He remained the CEO for several years and in 2000 sold his entire share of the company to a private equity firm. The small fortune that he acquired from the sale would be the legacy of his father’s company; and it would be wasted on uncontrollable drinking and gambling.
It was 2007 when Terry Watanabe took a trip to Las Vegas and never went home. He spent an entire year being a high roller at various casinos, enjoying the perks and slowly whittling down his personal fortune.
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During this year he played at several of the Harrah’s owned casinos on the Las Vegas strip and his money accounted for nearly 6% of the revenue at those locations for that year. He gambled at the Harrah’s casinos so much that the company actually created a new high roller tier for him called the “Chairman.” It is their most prestigious reward level with free concert tickets, $12,500 a year for airfare, and $500,000 in gift shop credit. It was a small reward for gambling away close to $200 million in the year he spent living and playing in Las Vegas.
Watanabe’s casino binge lasted until he blew it all in late 2008, and reportedly asked his sister for help during the family Thanksgiving dinner. After his revelation about how long he had spent in casinos and how much money he had gambled away, he entered a rehabilitation center in Omaha.
The center worked with him for several months to clean him of both his alcohol and gambling addiction. But, Mr. Watanabe’s problems did not stop there…
After being released from the rehabilitation center Harrah’s sued the man for the remainder of the losses that he had not paid before leaving Las Vegas. Watanabe came forward with $112 million of the losses but refused to pay anymore. His reasoning? He claims that all of the casinos he played at not only took advantage of his addictions, but encouraged them making the problem worse.
Eyewitness accounts tell a shocking story of employees who would allow the man to play 3 hands of blackjack at once, sometimes loosing him $5 million in one night. Reports also claim that a manager would do almost anything to keep Watanabe on the casino floor; offering him discounted or free drinks, ignoring the clear sign of intoxication in order to keep him gambling for 24 hours straight.
Terry Watanabe plead not guilty to charges that could land him in prison for nearly 28 years. He filed his own civil suit in order to prove that thier employees took advantage of him and his high roller status. Jan Jones, senior vice president of communications for Harrah claims that the civil suit will have no effect and that it was simply filed so that Watanabe would not have to pay a debt that he owed.
Watanabe’s case was supposed to appear in court in late 2010 but never did. Instead, a confidential agreement was met two weeks before the court date and charges on both sides were dropped with no money exchanged. Nevada’s Gaming Control Board claimed that they would still be doing an investigation to see if Harrah’s has broken any legal gambling regulations due to Watanabe’s allegations.
Today, the year long gambling binge is considered the biggest losing streak to even take place on the Las Vegas strip until another billionaire heir tops his rock bottom
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OMAHA, Neb.--(BUSINESS WIRE)--(NYSE: BRK.A; BRK.B) – Berkshire Hathaway Inc. Chairman and CEO Warren Buffett and Oriental Trading Company President and CEO Sam Taylor today announced that Berkshire Hathaway will acquire Omaha-based Oriental Trading Company. The company is the nation’s largest direct retailer of value-priced party supplies, arts and crafts, school supplies, toys and novelties. The transaction is expected to close by the end of November and is subject to the termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.
“Oriental Trading is a leader in its industry, has a strong management team and delivers exceptional customer value and service,” said Warren Buffett. “By increasing revenue, profits and the customer base over the last few years, Sam Taylor and the entire Oriental Trading team have successfully improved the business and positioned it for long-term growth. We are delighted to have them join the Berkshire Hathaway family and continue their quest to make the world more fun. They have had several changes to ownership in the past, but OTC has a permanent home with Berkshire Hathaway. ”
“We are excited to have one of the nation’s most respected businesses take ownership of our company,” said Taylor. “Over the years Oriental Trading Company has grown from a small family business to a leader in online retail. Berkshire Hathaway recognizes the growth potential of our business and provides a permanent foundation for our long-term strategic initiatives to expand our product lines and leverage our world-class technology and operations platform.”
For over 80 years Oriental Trading Company has made it easy and affordable for everyone to celebrate, have fun, and express creativity throughout their lifetime. The company offers over 40,000 products – more than half of which are exclusive – at guaranteed lowest prices through its www.orientaltrading.com website and catalogs. Oriental Trading was featured on this year’s Emmy-winning CBS reality television series Undercover Boss and is one of the Top 10 Online Retailers based on customer satisfaction.
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“Every day our dedicated Oriental Trading Company employees fill the orders of thousands of customers who depend on us to bring value, convenience and fun to their celebrations,” said Taylor. “Whether it is for an individual, school, church, business or not-for-profit organization, our commitment is to deliver products that meet and exceed the expectations of our customers. Being part of Berkshire Hathaway, one of America’s most respected names, will serve as an additional reminder for us to continually focus on our customers.”
Lazard Middle Market acted as financial advisors to Oriental Trading Company.
About Berkshire Hathaway
Berkshire Hathaway and its subsidiaries engage in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services. Common stock of Berkshire Hathaway is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.
About Oriental Trading Company
Oriental Trading Company is the nation’s largest direct retailer of value-priced party supplies, arts and crafts, toys and novelties, and a leading provider of school supplies and affordable home décor and giftware. Recognized as one of the Top 50 Catalog Companies and one of the Top 10 Online Retailers for Customer Satisfaction, Oriental Trading Company employs approximately 2,000 employees and offers more than 40,000 products to individuals, teachers, schools, churches, businesses and not-for-profit organizations. From pink flamingos, party supplies and wedding favors to holiday decorations, beading supplies and crafts, Oriental Trading Company makes the world more fun. www.orientaltrading.com.
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Cautionary Statement
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Certain statements contained in this press release are “forward looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.