For decades, Liberty House served as isle retail’s ‘fat cats’

Once the biggest of the Big Five, Liberty House was started by German sea captain Heinrich Hackfeld in 1849. Hackfeld first came to Hawaii with a ship’s hold full of silk clothing, crockery, dry goods, hardware, pens, pencils, window glass and other household items. His wife, Marie, her 16-year-old brother, J.C. Pflue­ger, and a nephew, B.F. Ehlers, arrived with him.

He opened Hackfeld’s Dry Goods on Queen Street. The public clamored for his wares. In 1850 he moved to a larger location on Fort Street. This store was so popular, it became known as "Hale Kilika" — the House of Silk. As business grew, the nephew took over management of the store while Hackfeld traveled the world for merchandise. The company took B.F. Ehlers’ name in 1862.

When sugar plantations came to Hawaii, Hackfeld became involved in financing sugar growers. From there he bought into eight plantations including the Lihue Sugar Plantation with Paul Isenberg, who founded the Dairyman’s Association (later sold to Meadow Gold). In 1886 Hackfeld sold his interest in the company and returned to Germany.

During World War I in 1918, Germans were forced to sell their property and businesses, and the new board of directors thought a German name was a liability. To prove their patriotism they chose the name "Liberty House" for the retail store and "American Factors" for their sugar operations, says marketing consultant Julie Percell.

American Factors (Amfac) became the largest company in the state and was the biggest of the Big Five. Liberty House was the only major department store in Hawaii for decades and, at one time, operated more than 20 stores under the Liberty House, Penthouse, Collections and Gear Up names.

Sheila Matsumoto Wakai, who worked from 1967 until 1989 as a buyer, said Liberty House really had no competition until Ala Moana Center opened. "Our motto was ‘first, best and only.’ We wanted to be the first in the state to carry things. It was our attitude to find the hottest trends, the best products and be the first to have it, exclusively if possible. Price was no object."

"It was fun being a buyer then," Wakai says. "We were the fat cats on the block. We had the best goods and the best selection. We were the leader. Consumers had fewer choices. Everyone who wanted quality came to Liberty House."

Staff adhered to a strict dress code in those days. "Women had to wear solid colors," Wakai continues. "No prints, plaids, or stripes. Skirts were of modest length. We had to wear nylons. If your hair wasn’t short, it had to be worn in a bun or ponytail."

"We gave Old World service back then," Wakai says. "Customers would often be greeted at the door by name. Salespeople would telephone their customers to tell them a shipment had arrived. We would do anything to make the customer happy. Our strong relationship with customers put us and kept us on the map."

Wakai recalls how the store went into a tizzy when Imelda Marcos, wife of the Philippine dictator, came to town. "Imelda would come to the store with an entourage of a dozen security people and handmaidens. All the managers would be awaiting her in their departments. She’d walk through the store and point at things. ‘Three dozen,’ she’d say."

"Marcos would make her way through the floors, pointing and buying, and then she would leave. She never tried things on and rarely touched them. She’d point and say how many she wanted. She behaved like royalty."

"I recall her buying 60 34-B white bras, to ‘give to the poor,’ she said. "Most of her purchases were commodities. She never bought jewelry. One year, when her first grandchild was born, she went straight to the children’s department and bought everything — cribs, clothes and toys. She cleared out the department."

"After her visit it took us the rest of the day to assemble and total her order," Wakai continued. "It would all get packed and delivered, and her people would then pay. She never handled money herself."

The downturn in Hawaii’s economy in the early 1990s caused sales to fall to $300 million from about $400 million, and the company did not reduce costs fast enough and it sought protection in Chapter 11 bankruptcy.

Federated Department Stores, owner of the Macy’s retail chain, bought Liberty House for $200 million. In November 2001 the Liberty House signs came down, and Macy’s signs went up.

Amfac morphed into the Kaanapali Land company in 2005, which owns 5,000 acres of land in West Maui, and Xanterra Parks and Resorts, based in Colorado.