ST. LOUIS — May Department Stores Co. agreed Friday to sell its Loehmann's off-price women's apparel chain for an undisclosed price to a group that includes a Spanish construction firm and a division of Donaldson, Lufkin & Jenrette Securities Corp.
The investor group is led by Sefinco Ltd., an affiliate of Entrecanales Y Tavora SA, an international construction company based in Madrid, and the Sprout Group, a division of Donaldson Lufkin.
Loehmann's, based in New York, operates 77 specialty stores selling upscale women's apparel at a discount. It had sales of $334 million in 1987 and currently employs 2,700 people.
May's shares closed $2.875 higher at $36 on the New York Stock Exchange. Traders said the rise was because of a Wall Street Journal report that May is auctioning a share of its interests in 29 regional shopping malls as well as a substantial block of its own stock to fight potential raiders. The St. Louis company would not comment on the report.