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The family that built Duane Reade into Manhattan's most important chain is starting a new retail operation in direct competition to its former company.
Members of the Cohen family recently opened a Price Depot store on Fulton Street, just east of Broadway in lower Manhattan. As many as six more locations are in the planning stages.
With its white-tiled floor and ceiling, fluorescent lighting and bare-bones beige shelves filled with shampoos, diapers and snack foods, the Price Depot bears a remarkable resemblance to the nearest Duane Reade store only two blocks away.
"It's a lot like Duane Reade because that's what the Cohens know best," says Eddie Mizrahi, vice president of Ralph's Discount City, a health and beauty aids store located near the new Price Depot. "They are a smart operation and they're a force to be reckoned with."
COHEN SONS CONTROL PRICE DEPOT
Price Depot is controlled by Bonnie and Leon Cohen, the sons of Eli Cohen who opened the first Duane Reade store in 1960 with his two brothers. The family sold Duane Reade in 1992 to Boston-based Bain Capital and gradually left the operation.
But all three Cohens are restricted by a non-compete agreement they signed in 1992. Mr. Cohen says the contract has another three years to...