The Nashville Knife

In order to persuade his reluctant son Franklin to join the family firm, W. Maxey Jarman once threatened to cut off his inheritance. Even after Franklin, now 41, became chairman of Nashville-headquartered Genesco Inc. in 1969, father-son squabbling continued; in 1972 the Genesco board trimmed Franklin Jarman's authority by giving his father "added management responsibilities," but company troubles mounted and Franklin was restored to full command. Last week the younger Jarman displayed his authority by announcing that he would shrink the size of the company that Maxey built.

In the fiscal year ended July 3 1, sales of Genesco's various divisions (Bonwit Teller, I. Miller, Flagg Bros. Shoes) reached a record $1.4 billion, but the company lost $53 million. To stop the drain, Franklin has decided to close 100 women's shoe stores, to sell an Italian men's clothing firm, and is even unloading the 347-unit S.H. Kress variety store chain. He has already shut down three textile plants in Tennessee and North Carolina. Together, these operations accounted for $18 million of the fiscal-1973 red ink. From now on, says Frank the Knife, he intends to "concentrate on improving the company's profits and worry less about sales."

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