Founded in 1935, the chain was headquartered in Oklahoma City and named for the last initials of its three founders: Rawdon E. Tomlinson, Enoch L. "Les" Gosselin, and Raymond A. Young. The three men each owned separate variety stores in Oklahoma when they met at a trade show in 1932. In 1935, the three pooled their financial resources to form the Central Merchandising Corporation and built a warehouse in Oklahoma City, allowing their stores to buy merchandise in bulk directly from manufacturers, instead of through wholesalers. They opened their first jointly-owned store in 1936. The owners' initials were ordered according to the ages of the three, with Tomlinson being the oldest. Raymond Young, the only partner remaining with the chain, oversaw operations until his retirement in 1970.