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California and the West

Federated to Close, Sell 6 More Stores

October 25, 2005|From Bloomberg News

Macy's parent Federated Department Stores Inc. said Monday that it would sell or close an additional six stores, bringing the total to 82, as a result of its $11-billion acquisition of May Department Stores Co.

Among the properties to be divested starting next year are the Macy's apparel store in the Oaks mall in Thousand Oaks and the Robinsons-May south store at North County Fair in Escondido.

The two locations bring to at least 28 the number of stores that Federated plans to close or sell in Southern California because they are near other company-owned properties.

The Thousand Oaks store, which opened in 1983, has 57 employees, Federated said. The Escondido store, which opened in 1986, has 280.

Cincinnati-based Federated said that the Macy's locations that remain in the affected malls or shopping centers would include employees from the divested stores. The company said it expected to offer employment to all management personnel in good standing and to the vast majority of associates.

The four other stores Federated identified Monday were in Arizona, Indiana, Kentucky and New Hampshire.

Federated plans to expand Macy's as a national brand by converting May stores to the nameplate next year and introducing more upscale merchandise.

Federated said it intended to begin "going out of business" sales Jan. 29 at 32 stores the company earlier announced it planned to sell or convert.

Shares of Federated, which have gained 6% year to date, rose 24 cents to $61.25.

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