Federated continues Fingerhut selloff
June 27, 2002-- Home Textiles Today,
Cincinnati — Federated continued the piece-by-piece selloff of its Fingerhut business with a deal to sell approximately $1.2 billion of its receivables to CompuCredit Corp.
The Atlanta-based credit card company will also assume $450 million in receivables-backed debt that has been issued by the Fingerhut Master Trust as part of the deal, which is still subject to the final negotiation of a definitive purchase agreement.
CompuTrend intends to retain more than 800 Fingerhut employees currently servicing the receivables portfolios at the company's St. Cloud and Monticello, MN, credit facilities, according to both companies.
Federated has already reached an agreement with FAC Acquisitions for certain Fingerhut assets, including the St. Cloud distribution center and several other facilities. The company expects to generate $1.1 billion to $1.5 billion of after-tax cash proceeds from the divestiture.