Federated Department Stores Inc. said Tuesday that it would cut more than 1,100 positions in North Hollywood as it phases out the Robinsons-May division, ending an era when Los Angeles County was a retail headquarters hub.
The job cuts were among 6,200 announced by Federated, the first since it completed its $11-billion purchase of May Department Stores Co. on Aug. 30.
For The Record
Los Angeles Times Saturday September 24, 2005 Home Edition Main News Part A Page 2 National Desk 1 inches; 36 words Type of Material: Correction
Federated job cuts -- An article in Wednesday's Business section about job cuts by Federated Department Stores Inc. transposed the locations of two defunct retail chains. Henshey's was based in Santa Monica and Hinshaws in Whittier.
A "good number" of the affected employees, who work in regional division offices and May's former St. Louis headquarters, are expected to take other jobs within the company, spokeswoman Carol Sanger said.
Cincinnati-based Federated also operates the Macy's and Bloomingdale's chains.
No employees will lose their jobs before March 1, and stores will continue operating as usual through the holiday shopping season, the company said.
Federated also said Tuesday that it would sell the bridal group division it acquired from May, which in California operates 25 David's Bridal stores and 62 After Hours Formalwear sites.
The bridal group is profitable and has "significant growth opportunities," Federated Chief Executive Terry J. Lundgren said in a statement. But it does not "fit with Federated's strategy of focusing on department stores and building the Macy's and Bloomingdale's brands."
The company further announced that it would convert all 62 of its Marshall Field's stores to the Macy's nameplate in fall 2006. Ultimately, Federated will operate 850 Macy's stores and 40 Bloomingdale's locations.
Locally, Federated said, it will replace Robinsons-May sites with Bloomingdale's stores at South Coast Plaza in Costa Mesa and Fashion Valley Center in San Diego.
Although Southern California's economy is growing, the job losses are a blow, said Jack Kyser, chief economist for the Los Angeles County Economic Development Corp.
"It's always a disappointment when you have any number of jobs leaving, and 1,136 is a sizable chunk," he said.
Further, the loss of the Robinsons-May/Meier & Frank division marks the end of an era when the Los Angeles area was home to some of the biggest names in retail, Kyser said.
Large companies that once had area headquarters included J.W. Robinsons, May Co., Broadway and Bullocks, he said. Smaller players included Buffums in Long Beach, Hinshaws in Santa Monica, Ivars in Highland Park and Henshey's in Whittier.
