Federated explores options
Staff -- Home Textiles Today, 4/1/2002 12:00:00 AM
With negotiations between Federated Department Stores and Business Development Group Acquisitions for the sale of Fingerhut at a stand-still after more than a month, Federated will begin to explore other potential transactions with third parties regarding its catalog division.
In addition, Federated said that 3,300 of the approximately 3,700 Fingerhut employees who previously received termination notices would be terminated by April 5.
Federated had entered into a non-binding letter of intent with BDGA, but the two sides have yet to sign a definitive agreement for the transaction. However, the two sides plan to continue discussions and negotiations.
"We have provided BDGA five weeks to complete due diligence, secure committed financing and execute an agreement on terms acceptable to Federated, and despite good faith efforts by both sides to accomplish this, committed financing has yet to be secured and a transaction has yet to be finalized," said Ronald Tysoe, Federated's vice chairman. "While we are still hopeful of completing a transaction with BDGA, it is now time to additionally explore negotiating the sale of individual components of Fingerhut, with an emphasis on preserving as many jobs as possible in that process."
Federated announced its intention to sell or shutter its Fingerhut operation in January.
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