Palace Clothing Company Building

Henry Guettel and Henry Auerbach established the Palace Clothing Company in 1893. Specializing in clothing for men and boys, the company grew into one of the most prominent clothing chains in the Midwest. In 1924, Kansas City Architect Frederic McIlvain designed this historic structure utilizing the Chicago School style of architecture. The store's continued growth required the family to consistently expand and renovate the store, and the result was that this budling held one of the largest clothing stores in the world. Reflecting trends in the industry and downtown Kansas City in the mid-20th century, the building was converted into an office complex during the 1970s. Further reflecting larger trends, including the revival of the downtown area as a destination for shopping and entertainment, the former retail space will soon serve as the home of a hotel within the Hilton chain.

Iowa-born Henry A. Guettel met his future brother-in-law and co-partner of the Palace Clothing Company, Henry A. Auerbach, while working for a prominent wholesale clothier in Chicago. Guettel and Auerbach formed a partnership in 1888 and established the first Palace Clothing Company in Topeka, Kansas. Always focused on expansion, Guettel and Auerbach purchased, coincidentally, the Palace Clothing Store in Kansas City's business district (909 Main Street) in 1893, which became their first affiliate business. Guettel and Auerbach had also opened affiliate locations in Emporia, Kansas (1899) and St. Joseoh, Missouri (1901). 

Auerbach remained in Topeka while Guettel stayed in Kansas City where and gained a reputation as an extraordinarily gifted and skilled merchant. Years later, Guetell purchased Auerbach's interests in the business and turned the Palace Clothing Company into one of the most successful clothing stores in the West. After Henry Guettel died at the relatively young age of 55 in 1921, his son, Arthur, took over the operation. The business did not suffer. In fact, under Arthur's leadership, the family business experienced considerable growth, from $1.5 million in volume in 1921 to greater than $6 million before closing its doors in 1964.

By 1924, Arthur felt it necessary to find a new location in Kansas City for the Palace Clothing Company. The ninth street location no longer resided in the mercantile center of Kansas City, and the store's growth mandated a need for a larger building. Arthur Guettel hired Frederic E. Mcilvain to design what is now the historic Palace Clothing Company Building, which rises seven stories (plus a mezzanine) and exemplifies the Chicago Style (or Commercial Style). 

Arthur Guetell chose to retire in 1964 and close the Kansas City store. At its peak, the Palace Clothing Company store in Kansas City stood as one of the largest clothing stores in the world, with 275 feet of store frontage. In addition to the aforementioned $6 million in volume, the men's and boy's clothing business employed more than 500 people working in eight stores. After the store closed, the building sat vacant until 1972, when an investment group remodeled the building to function as a multitenant office building. Along with interior remodeling, the exterior received a new metal facade. However, twelve years later, the metal facade was removed, revealing again its historic character. 

The building primarily acted as an office building until the late 2010s, when a group purchased it with intentions of transforming it into a hotel. The Global COVID-19 pandemic paused efforts to complete the hotel, but construction resumed in 2022 and, at the time of this writing, is expected to be completed in 2023; plans include a full-service hotel with a rooftop bar managed by the Hilton corporation. 

Collison, Kevin. "Historic Palace Clothing Co. Building Finding New Future as Boutique Hotel." CityScene KC. cityscenekc.com. November 14, 2018. https://cityscenekc.com/historic-palace-clothing-co-building-finding-new-future-as-boutique-hotel/.

--- --- --- "Work Expected to Resume This Spring on Hilton Boutique Hotel Project" CityScene KC. cityscenekc.com. January 19, 2022. https://cityscenekc.com/work-expected-to-resume-this-spring-on-hilton-boutique-hotel-project/.

Millstein, Cydney. "Registration Form: Palace Clothing Company Building." National Register of Historic Places. mostateparks.com. 2009. https://mostateparks.com/sites/mostateparks/files/Palace%20Clothing%20Co.%20Bldg.pdf.

Roberts, Rob. "Palace Clothing building's price is part of Downtown's rags-to-riches story." Kansas City Business Journal. bizjournals.com. February 24, 2017. https://www.bizjournals.com/kansascity/news/2017/02/24/palace-building-sale-price-downtown-kansas-city.html.