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provided beauty salon services. JM catered toward younger women
between the ages of 20 and 30 years old and in middle- to upper-
income brackets.
In January 1940, Cyril, Joseph, and Jean Blum formed
Specialty for the purpose of operating a branch store in Reno,
Nevada. At that time, JM lacked the capital to open a new store.
Specialty opened a second store in Oakland, California, in 1948,
and a third store in Lake Tahoe, Nevada, in 1950. All
Specialty’s stores were operated under the JM name and by JM
management, and they had merchandise and customers similar to
JM’s.
Whenever possible, JM and Specialty elected to lease rather
than own their store locations. The companies did not have a
great deal of available capital, and leasing store locations
permitted them to expand.
Relevant financial data from the financial statements of JM
for the fiscal years ending January 31, 1949 through 1952, are as
follows:
Fiscal Year Ending January 31
(In Thousands)
1949 1950 1951 1952
Assets $1,778 $1,886 $1,983 $2,161
Earned surplus 645 749 757 782
Sales 4,994 4,856 5,239 5,591
Net income 117 58 41 38
Similarly, relevant data from the financial statements of
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Last modified: May 25, 2011