Target to sell half its credit-card receivables  

Minneapolis – Target Stores said it is negotiating “with a credit partner” to sell about half of its credit-card receivables; the price will be $4 billion.

Once terms are agreed upon, Target expects the deal to close in the second quarter of 2008. The company stressed it expects to enter a “new, long-term relationship” with the investment partner in question.

The $63 billion retailer noted that the proposed deal would satisfy the goals it announced in September last year, namely to provide cash from a non-debt source, while maintaining its credit card business.

The move stems in part from pressure exerted by Pershing Square Capital Management, which in July 2007 said it had acquired 9.6% of Target common stock; Pershing managing member William Ackman said he would suggest ways to “correct” the undervaluation of Target’s share price. Target then said it would work with Goldman Sachs to review its credit card business.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!