a national presence. In 1976, to help turn the company around, Beneficial hired Henry "Hank" Johnson, a veteran of the mail order operations of Montgomery Ward and Avon. One of Johnson's first moves was to streamline company management. Dozens of executives were fired, and overall employment numbers were reduced by half over the next five years, from 7,000 in 1976 to 3,500 in 1981. Johnson also closed Spiegel's remaining catalog stores. Johnson changed Spiegel's image to that of a "fine department store in print." Accordingly, the Spiegel catalog was completely revamped; low-budget items were replaced by upscale apparel and accessories for career women. Merchandise bearing designer labels began appearing in 1980, when the company introduced a line of Gloria Vanderbilt products. New direction in the 1980s Catalog sales in general boomed during the early 1980s. Spiegel's sales began to grow 25 to 30 percent a year. Although Spiegel still ranked fourth in catalog sales during this time, trailing Sears, JCPenney, and Montgomery Ward, the company's strategies were being followed closely by its larger competitors. In 1982, Beneficial sold Spiegel to Otto-Versand GmbH, a large, private West German company prominent in catalog sales. Between 1982 and 1983, Spiegel's revenue increased from $394million to $513million, and the company's pre-tax profits more than doubled, reaching $22.5million in 1983. The following year, control of Spiegel was transferred from Otto-Versand itself to members of its controlling family, the Ottos. Under new ownership, Spiegel's transformation into an outlet for higher-end products continued. In 1984, Spiegel began distributing specialty catalogs in addition to its four primary catalogs; 25 of these specialty catalogs were in circulation by 1986, featuring Italian imports, plus-sized clothing, and other specialty items. That year, Spiegel mailed a total of 130million catalogs, for $100million, and company sales surpassed the $1billion mark for the first time. In 1987, six million shares of nonvoting stock were sold to the public, marking the first time since 1965 that Spiegel was not completely privately held. In 1988, Spiegel acquired Eddie Bauer, Inc., a retail chain specializing in sportswear and outdoor equipment from General Mills. Eddie Bauer, which also maintained a catalog operation, had annual sales of $260million. In the first year following the acquisition, the chain was expanded from 60 to 99 stores. By 1989, Spiegel had become the number three catalog retailer in the United States, with a total circulation of about 200million catalogs, including 60 different