Eureka (company)

Eureka

Company type	Division
Genre	Home care
Founded	1909 (1909) (as Eureka Vacuum Cleaner Company) Detroit, Michigan, U.S.
Founder	Fred Wardell
Headquarters	Parsippany, New Jersey , U.S.
Products	Cordless vacuums, upright vacuums, stick vacs
Owner	Midea Group
Parent	Electrolux (1974-2016) Midea Group (2016-present)
Website	www.eureka.com

Eureka is an American home appliances brand owned by Chinese company Midea Group that manufactures vacuum cleaners, including uprights, cordless, canisters, sticks and handhelds. Eureka also manufactures aftermarket vacuum accessories, such as bags, belts and filters.

Eureka started as one of the earliest vacuum cleaner manufacturers of North America. A division of National Union Electric Company since June 30, 1960, and business partner with Williams Oil-O-Matic—1945-1972, was owned by Electrolux from 1974 until 2016 when it was sold to Midea Group.

History

1922 Eureka Model 9 vacuum ad, offering a 10-day home trial of the product

The Eureka Vacuum Cleaner Company was founded in 1909 in Detroit, Michigan, by Toronto, Canada-born real estate auctioneer Fred Wardell (1866-1952) to sell vacuum cleaners for which he had acquired several patents. The Wardell family had moved to Detroit in 1873 where Fred's father, Orrin Wardell, established Wardell & Sons, auctioneers. In 1902, Fred left a 20-year career with his father to sell vacuums for Stecker Electric and Machinery Company, and in 1909, Stecker made a vacuum for him. Being somewhat of a Greek scholar he shouted with the well-known Wardellian enthusiasm, “Eureka!”, from the Greek exclamation of great discovery, "heurēka!"

Mr. Wardell's excitement led him to begin his own company in 1909, calling it The Eureka Vacuum Cleaner Company. He sold himself a thousand dollars worth of the stock, which no one else purchased. He had one office secretary, and he himself was the general manager, sales manager, and sales force. That first year 600 Model 1s were sold. Sales thereafter continued to climb, so in 1913 Mr. Wardell and four partners purchased their first plant, with the Stecker company remaining in charge of production. By this time Eurekas came in six different models with a multitude of attachments for walls, upholstery, and bare floors. The cleaners were sold to the public through two distributors, one handling accounts to the east of an imaginary line through Detroit, and the other handling accounts to the west.

The business grew so well that by 1919 a new three-story factory, designed by the firm Beckett & Akitt, was erected at Greenwood Avenue and the Michigan Central Railroad in Detroit, Michigan. It covered an area of over 19,000 square feet, making it the largest vacuum cleaner factory in the world at that time. Mr. Wardell established the conveyor system of assembly that produced 1,000 cleaners a day; or an average of 300,000 a year. The burgeoning business eventually became too much for the Stecker Company to handle, leading The Eureka Company to purchase the manufacturing rights to The Eureka in 1920. Early that same year a five-story retail store and company headquarters had opened, located at 1521 Broadway Avenue near John R Street in Detroit. The company took up occupancy along with Wardell & Son Auctioneers. Atop the summit of the building was erected a stone carving of the letter 'E'.

In 1922 The company introduced the Eureka Model 9, which undercut their main competitor Hoover by 50% in price, with the same horsepower motor and a front-mounted bag that customers preferred to Hoover's rear-mounted bag, offered with a 10-day home trial, becoming the Model T of the vacuum cleaner industry. The advertisement shows the price was $45 ($819 in 2023 dollars ).

This propelled Eureka to purchase its factory building and site in June of 1924 and to produce its millionth vacuum cleaner in the late fall of that year. That milestone cleaner was gold-plated as a nationwide sales award, and won by the Newark, New Jersey branch. Business was booming, which necessitated more than one factory addition to meet consumer demand. As a result, Eureka soon became established as the country’s No. 2 vacuum cleaner manufacturer next to The Hoover Company; selling one-third of all cleaners manufactured in the United States of America.

In 1925, Wardell tried his hand at real estate, building the Wardell Hotel on Woodward Avenue and Kirby Street, today known as the Park Shelton.

Three years after the millionth cleaner was produced, production was briefly halted for a ceremony to mark the occasion of the assembling of the 2,000,000th Eureka vacuum cleaner. That machine was uniquely-made to be resplendent, as well. This time, the casing was not only gold-plated but studded with brilliants, and the dust bag made of silk. It functioned like any other cleaner, but it, too, made to be a sales trophy to one of 22 branches which had sold the most cleaners during October, November and December. At the company's nineteenth annual sales convention at the Statler Hotel in February 1928, it was announced that the Los Angeles Branch had won the contest selling 2,585 cleaners.

1930 saw expansion into the making of other appliances with the introduction of the Eureka electric range, and in 1931, the company’s factory was pumping out 2,000 vacuum cleaners a day.

The Depression, however, soon dampened Eureka’s enthusiasm for its costly sales force. Like other companies, Eureka retreated from its dependence on door-to-door salesmen (who averaged 20 calls before they made one sale), and shifted its emphasis from selling through retailers to selling to them. From 1933 to 1936, sales averaged $2.68 million and profits were $251,000. Its expensive distribution system, unsuccessful new product introductions (Eureka also came out with a portable range, which flopped), and outdated factory exacerbated the effects of the collapse of consumer buying during the Depression. By 1937, the company was in the red, and from 1937 to 1939 its annual losses averaged $199,000.

Although the quality of Eureka cleaners was still respected, the company was floundering and Wardell had admittedly lost enthusiasm for running it; perhaps, in part, due to the passing of his wife, Helen, in 1936. He therefore sought a successor and persuaded Henry Burritt, the chief of sales for Nash-Kelvinator (the manufacturer of Kelvinator refrigerators), to take charge of the company. In 1939, Burritt took over and set about reorganizing Eureka’s distribution system, shaking up top management, and redesigning the vacuum cleaner with the help of industrial designer, George W. Walker.

In 1940, the company discontinued its use of door-to-door salesmen. Nevertheless, losses continued, with a $500,000 loss on almost $5 million in sales in 1941. Vacuum cleaners sales had fallen to about seven percent of the industry total. Eureka set out to curtail the losses by introducing tank-type cleaners into its line-up with its purchase of the Progress Vacuum Corporation of Cleveland, whose machinery for its tank-type cleaner Models P and PD were transferred to its Detroit factory.

Partly due to the costs of a massive door-to-door sales force, along with the Great Depression, in the late 1930s the company had gone into the red and remaining in that state until it was revived by World War II and a wartime production business. From 1942 until the end of the war, that production included gas masks and flare guns. During the war years Burritt and his managers focused on how to take advantage of the surge in consumer spending that was expected to follow the war. The company decided to diversify its offerings of consumer appliances and decentralize operations.

Williams Oil-O-Matic heater, shown in a company catalogue

So on June 4, 1945, Eureka issued $1.76 million worth of common stock and used the proceeds to purchase 245,000 shares of Williams Oil-O-Matic stock from Walter Williams for $1.39 million. The company, a Bloomington, Ill., manufacturer of oil-based heaters and refrigerators for the home, had been founded in 1918. The remaining 185,000 shares of Williams' stock were traded for Eureka common stock two-for-one.

The Model D-171, was the first of several Eureka upright and tank-type cleaners Mr. Walker designed for Eureka over the next eight or so years. It included the new Attach-O-Matic attachment coupler. In 1945, the company it launched the production of its long-running Disturbulator brush roll, which consisted of two rows of bristles at different heights. So, the Model D-171 became the Model D-272 with the modification to use the new brush roll. In 1971, beater bars were added, which helped to improve and extend the manufacture of the Disturbulator through the beginning of the 1990s.

By 1946, the company was distributing its vacuum cleaners through 5,500 dealers, with 55 distributors, 12 of them company owned. By 1947, those numbers had increased to 8,500 dealers and 9,000 retailers. Burritt began to spend heavily on national advertising, a practice that had lapsed in the 1930s. The company had a net worth of over $6 million that year. In the fiscal year ending June 1947, sales totaled $21 million, with profits of $1 million. Oil burners accounted for approximately one third of sales and profits; however, there was almost no overlap in the production and distribution of the merged companies; Eureka continuing to focus on floor and surface care and Williams retaining its HVAC lines heaters, air conditioners, and a wooden lung. In an attempt to broaden its array of consumer goods and enlarge its distribution network, Eureka-Williams bought the Chicago-based National Stamping & Electric Works in 1946 for $640,000. The company made electric toasters, irons, and other appliances under the “White Cross” label, with sales of $500,000 a year. The following year, it came out with a line of electric disposal units, the Dispos-O-Matic.

The 1947 debut of Eureka's popular 200 Series, which would later become part of the popular "F & G" uprights due to the Style F & G dust bags they all used, began with Mr. Walker's cosmetic design of the Super Automatic Model S-246 upright cleaner, The Deluxe Model D-360 upright cleaner, as well as tank-type cleaners for Eureka and private labels such as Montgomery Ward.

Even with the industrial engineer's sleek styling, wider distribution and national advertising, Eureka consistently ran behind Hoover. In vacuum cleaner circles a battle raged between the proponents of the tank or canister-type cleaners and the upright or floor models. Eureka sidestepped the issue by selling both, and an assortment of attachments, as the “Eureka Home Cleaning System,” in 1945. In 1947 sold for the hefty sum of $144.95 (which would be just under $2000 in Dec. 2022). This concept allowed Eureka to sell two cleaners per sale instead of one; however, the obligatory purchase of the system caused customer pushback with consumer trade overseers resulting in its discontinuance after a short time. Eureka continued to progress, however, and introduced its first canister, the Roto-Matic, with its swiveled hose inlet, in 1952.

In 1953, Eureka-Williams was purchased by Henney Motor Company, based in Freeport, Illinois and controlled by principal stockholder C. Russell Feldmann. The deal was reported to be worth $4 million, with Feldmann laying down only about $400,000 in cash while assuming Eureka-Williams’ obligations. Eureka-Williams became a division of the Henney Motor Company; going on to become the first U.S. manufacturer of a purpose-built electric car (1959-1961), the Henney Kilowatt, which flopped commercially.

Due to the construction of Lodge Freeway, in late 1955 the company purchased the Meadows Manufacturing Company plant, located south of Bell Street and west of Hannah Street on Bloomington Illinois' southeast side, from Thor Corporation for $450,000. It consisted of two buildings with an aggregate floor area of 180,000 square feet that had been used from its inception in 1920 to the mid-1950s to manufacture conventional wringer clothes washers under brand names such as Meadow Lark and Select-a-Speed. During the Korean War it also produced 16mm shells. Among the new models manufactured at the Bloomington facility were the wine red Model S-255 in 1955, which used a modified motor hood from its predecessor that would be used on many different model-types for the next several decades, and 1957's iconic pastel green, cream, and metallic gold-colored "Golden Crown" Model 960-A canister and its upright companion Model 260—an apparent nod to the company moniker based on the tale of Archimedes and the Golden Crown.

Eureka celebrated its 50th anniversary of its incorporation in 1960, the year in which Feldmann announced his intention to merge Eureka-Williams with National Union Electric Corporation, a heating and air-conditioning manufacturer of which he was both chairman and president. The merger took place on June 30 of that year making Eureka a privately-traded company. At the time of the merger Eureka-Williams was described as manufacturing vacuum cleaners, oil burners, school furniture, aircraft generators, hydraulic motors, starters and inverters, and thermal batteries at plants in Bloomington and Canastota, New York.

Eureka-Williams fared well with National Union, playing the part of the steady and conservative manufacturer in a rather idiosyncratic company. The Mobile-Are (what some refer to as one of the "canned hams" due to its shape resemblance of the foodstuff), Princess, Prince, and Empress canisters were part of Eureka's goal to provide more variety in styling and performance. The Vibra-Beat nozzle was another choice that could be used with any of them. Both its canisters and uprights were mainly enameled in Ivory and Lagoon Blue for a good share of the Sixties, along with some grays and creams, followed by Gold Mist—some canisters sporting laminated Teakwood trim in addition. In 1969, the company introduced its Vanguard Model-Type 2080-A with its avant-garde sliding height adjustment called The Rugulator. The 2080-A was part of the first line of the new 2000 Series, with five other uprights of various customer options to meet the needs of both preferences and pocketbooks. By 1971, Eureka-Williams accounted for 40 to 50 percent of National Union’s sales and profits, and National Union reported that vacuum cleaner volume had climbed for the 12th consecutive year.

Eureka's innovations in the 1970s included its 1800 Series Empress II canister line with some new features such as its Air-Matic console and large rear wheels; its Sweet Sixteen 1600 rectangular canister series; the Roto-Matic Power Team 1200 Series canister line; its Vibra-Groomer and Vibra-Groomer brush rolls introduced in 1971 and 1978, respectively; TouchPower fingertip control on its top-of-the-line uprights, Widetrack 16" nozzle upright in 1977; 6.0-amp Extra Suction Power—ESP motor; and Self-Propelled uprights in 1979. Increased use of plastics—both as a cost-saving measure and as a way to reduce the weight—also occurred with the move to Lexan resin bases and cord hooks in 1974.

In 1973, Eureka-Williams purchased 38 acres of land in north Normal, Illinois and built a warehouse and motor department building at 1201 E. Bell Street. After AB Electrolux of Sweden purchased National Union Electric Company in 1974, a 50,000 square foot addition was built at the Bloomington plant plus a 210,000 square foot warehouse plant in Normal. Electrolux renamed its new acquisition as The Eureka Company, nearly going back to its original name but omitting "Vacuum Cleaner".

Since the 1980s a variety of new stylings emerged including the Quiet Kleen and Vactronic canisters, motors with amps including 4.0, 4.8, 5.0, 5.2, 5.5, 6.2, 6.5, 6.7, 7.0 ... all the way up to 12-amps. The World Vac Series, Powerline Series, Express Power Team Series, Bravo and Bravo II Series, SurfaxMax Home Cleaning System, The Boss! Series, and others led Eureka into the 21st century. These cleaners testify to the increased use of plastics in most of their components.

In 1981 a plant in Juarez, Mexico was opened, and two years later a large twin plant-warehouse was built in El Paso. Both these plants grew substantially over the next seven years. An addition to the Normal factory was completed in 1997, and it closed in 2000.

In 2003, Eureka's former Detroit office building was renovated with a restaurant on the ground floor and five full floor residential on the upper five stories called the Eureka Lofts.

In 2004 the Eureka Company name was discontinued and replaced with Electrolux Home Products Division, although the brand name was still used. In August 2011 Electrolux Small Appliances North America relocated to Charlotte, N.C., from Bloomington, Illinois, uniting the corporate office operations and support functions for all of Electrolux's North American vacuum, small appliance, and major appliance brands under one roof.

In 2011 Electrolux ended its presence in Bloomington-Normal, and in 2016, Electrolux sold Eureka and was purchased by Chinese company Midea Group, parent company of Midea America Corp.