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Analysts Say Macy Appointments May Signal Early End to Bankruptcy

July 29, 1993|GEORGE WHITE | TIMES STAFF WRITER

Amid speculation that it may emerge from bankruptcy sooner than expected, R.H. Macy & Co. on Wednesday appointed an executive to manage its reorganization efforts and selected a new chairman for its important Macy's West division.

The retailer picked Michael Steinberg, president of the May Department Stores' Houston-based Foley's chain, for the post of chairman and chief executive of the Macy's West division. The 51-store division, headquartered in San Francisco, includes Macy's and Bullock's department stores located mostly in California. Steinberg replaces Daniel Finkelstein, who resigned in January.

Industry analysts say the appointment is a sign that the New York-based retailer is establishing the management team that will lead the company as it reorganizes under Chapter 11 bankruptcy. The company filed for protection from creditors in January, 1991, partly because it could no longer cope with the debt from a management buyout that took the company private in 1986.

Macy also sought to advance its plans for emerging from bankruptcy by promoting Thomas C. Shull, formerly senior vice president, to the position of executive vice president. In his new position, Shull will be responsible for developing Macy's five-year reorganization plan. He also will negotiate the terms of the reorganization plan with creditors.

Last year, many industry analysts were predicting that Macy would emerge from bankruptcy in 1995, but many now believe that it could complete that process in 1994, said Barbara Wedelstaedt, an analyst at Duff & Phelps in Chicago.

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