Federated Department Stores Inc., owner of the Macy's chain, said Thursday that it agreed to sell the Northridge Broadway store and six Northern California stores to resolve antitrust concerns involving its 1995 acquisition of the Broadway Stores Inc.
The concerns were raised by California Atty. Gen. Daniel Lungren, who reviewed Federated's purchase of the Los Angeles-based Broadway group.
Federated agreed to sell the Broadway at Northridge Fashion Center because Lungren concluded that Macy's already has a strong presence in the San Fernando Valley and that the region needs a different company's department store to ensure a competitive environment.
The settlement with Lungren was the final legal issue related to the acquisition. Under the deal, Cincinnati-based Federated must inform other department store operators of the availability of the seven stores. Federated can sell the sites to the highest retail bidder, but the operators of each mall must agree to accept the proposed tenant.
The six stores in Northern California are Emporium and Weinstock's stores that were part of the Broadway chain. Lungren also concluded that the locations of those stores need a more competitive mix.
In all, Federated is keeping 50 of the 82 stores in the Broadway chain. Of the 50, 45 are being converted into Macy's and five will become Bloomingdale's, a more upscale chain also operated by Federated.
In all, 25 of the 45 new Macy's and four of the five designated Bloomingdale's locations are in Southern California.
Federated has already sold nine of the former Broadway sites to Sears, Roebuck & Co. The remaining stores have been put up for sale or closed.