CRAZY EDDIE...Fate: Bankruptcy...Founded: Brooklyn, NY 1971...Defunct: 1989...Industry: Discount electronics...CRAZY EDDIE was a consumer electronics chain located primarily in the Northeastern United States. The tri-state area of New York, New Jersey, Long Island, and Connecticut held 43 stores at its peak. It earned more than $300 million in sales. The chain rose to prominence as much for its prices as for its memorable radio and television commercials, featuring a frenetic "crazy" character played by WPIX-FM radio dj Jerry Carroll. In February 1987, the United States Attorney's Office for the District of New Jersey commenced a federal grand jury investigation into the financial activities of Crazy Eddie.
Unable to sustain his fraudulent business practices, co-founder Eddie Antar cashed in millions of dollars worth of stock and resigned from the company in December 1986. Crazy Eddie's board of directors approved the sale of the company in November 1987. The entire Antar family was immediately removed from the business. The new owners quickly discovered the true extent of the Antar family's fraud, but were unable to turn around Crazy Eddie's quickly declining fortunes. In 1989, the company declared bankruptcy and was liquidated.
Eddie Antar became the focus of SEC and Federal investigations, and was eventually charged with a series of crimes. Antar fled to Israel in February 1990, but was found and returned to the United States in January 1993 to stand trial. His 1993 conviction on fraud charges was overturned, but he eventually pleaded guilty in 1996. In 1997, Antar was sentenced to eight years in prison and received massive fines.
The TV ads featuring an out-of-control Jerry Carroll, were a hallmark of New York City television throughout the late '70's and well into the '80's. New York City radio stations which routinely ran Crazy Eddie ads were 99X, 66WNBC, 95.5 WPLJ, WPIX 102 and others.
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