Kinney Services

Kinney Services Inc. was an American conglomerate company that existed from 1961 to 1972. Kinney Services was established as a holding company and originated from a joint venture between a funeral business and parking company. After acquiring several more funeral and cleaning businesses, the company diversified into entertainment. In 1966, Kinney Services underwent a merger with National Cleaning Contractors (founded in 1886) and changed its name to Kinney National Services and by 1972, it spun off its non-media assets to National Kinney Corporation and reorganized itself into Warner Communications.

Background

Riverside Chapel and Kinney Parking's business venture

In the early 1950s, Steve Ross married into the wealthy Rosenthal Family which managed the Riverside Memorial Chapel and became a close associate to Edward Rosenthal (then-president of Riverside and Steve's father-in-law). Steve was employed at Riverside and control of the business was transferred to him in 1958. To generate extra income, Steve began renting the chapel's limousines during night-time and the funds he made led him to form a car rental company known as Abbey-Rent-a-Car. Its operations were not profitable and by 1959, it was nearing shutdown. Steve struck a deal with Kinney Parking (a New Jersey parking company) to grant his rental business a branding license and free parking, leading to the car rental being renamed to Kinney System Rent-A-Car and becoming a joint venture between Riverside and Kinney Parking. In the early 1960s, Steve was hoping to form a large conglomerate and take it public on the stock market, and despite some opposition, he merged the businesses under a company known as Kinney Service Corporation in 1961. Brought into the new company were Kinney Parking, Riverside Memorial, Kinney Rent-A-Car, and City Service Cleaning Contractors (a close family business).

Expansion into entertainment

Merger and breakthrough into entertainment

The company took its new name on August 12, 1966, as Kinney National Services Inc., when it merged with National Cleaning Contractors Inc. Steve Ross retained his position as CEO.

Kinney National Services (later, National was removed from the company name in February 1971) was known for purchases and sales:

* On July 21, 1967, Kinney National expanded by acquiring National Periodical Publications (more commonly, but not yet officially, called DC Comics, which would occur in 1977) which owned the ''Mad'' magazine of E. C. Publications, Inc. The acquisition was completed on August 25 of the same year.
* On November 13, 1967, Kinney bought Hollywood talent agency Ashley-Famous. Ted Ashley (the founder of Ashley-Famous) suggested to Ross that he buy out the cash-strapped film company Warner Bros.-Seven Arts, which had purchased Atlantic Records that same month.
* In February 1968, Kinney acquired Panavision, Inc.
* On October 8 of the same year, Kinney National sold its subsidiary Kinney System Rent-A-Car to Sandgate Corporation for about $11 million in cash and notes.
* On January 28, 1969, it was announced that Kinney National would acquire Warner Bros.-Seven Arts. The acquisition was completed on July 4. On April 20, Ashley-Famous was sold because of antitrust laws prohibiting a company from owning both a production studio and a talent agency. In August, Ted Ashley became chief of the film company. On December 16, Warner Bros.-Seven Arts Inc. was rebranded as Warner Bros. Inc. Beginning with the unexpected success of the concert documentary '' Woodstock'' (1970), Warner Bros. started scoring box office hits again and became a major studio.
* In 1970, Kinney National bought Jac Holzman's Elektra Records and Nonesuch Records.

On June 10, 1971, Kinney sold Riverside Memorial Chapel to Service Corporation International. Kinney also announced that it would form a new separate company focused on its parking and cleaning businesses; National Kinney Corporation was formally founded in September 1971.

On November 22, 1971, Kinney Services also bought Television Communications Corporation (which was renamed as Warner Cable in 1973), including its recording studio operations of 1,210,500 common shares.

Kinney National also owned wood flooring manufacturer Circle Floor from Seymour Milstein and Paul Milstein, when Kinney's predecessor bought it in 1964 for $15 million, with the Milsteins remaining as managers of the unit until 1971 before the sale.

Financial scandal, spinoff and reorganization

Due to a financial scandal involving price fixing in its parking operations, Kinney National spun off its non-entertainment assets on August 7, 1971 as the National Kinney Corporation, and renamed the remaining Kinney Services as Warner Communications Inc. on February 10, 1972.

Steve Ross was the company's sole CEO, president, and chairman. Directors included Charles A. Agemian, the CEO of Garden State National Bank.

Works cited

References

{{Authority control

Predecessors of Warner Bros. Discovery
Companies formerly listed on the New York Stock Exchange
Conglomerate companies of the United States
Defunct mass media companies of the United States
American companies established in 1966
American companies disestablished in 1966
Mass media companies established in 1966
Mass media companies disestablished in 1972
Corporate scandals
Corporate crime
Conglomerate companies established in 1966
Conglomerate companies disestablished in 1972