[Eugene Ferkauf] also made no secret of how he came up with the name E. J. Korvette. The “E” comes from the first letter of his first name, the “J” from that of Joe Swillenberg, an old Tilden friend who became a top company executive. Korvette is a deliberate misspelling of corvette, a reference to a class of naval ship, not the car.
The name does not, as urban (or perhaps suburban) legend has it, refer to “eight Jewish Korean War veterans.”
http://www.nytimes.com/2012/06/07/business/eugene-ferkauf-founder-of-e-j-korvette-chain-dies-at-91.html