Federated's Fingerhut sale falls through
May 7, 2002-- Home Textiles Today,
Cincinnati — Federated Department Stores and Business Development Group Acquisitions have mutually announced the termination of their negotiations for the sale of Federated's Fingerhut division.
The two companies said that such factors as a difficult economic environment for acquisition financing led to the joint decision.
Federated will now pursue opportunities to sell individual assets of Fingerhut and shut down all operations of the Fingerhut catalog over the next 30 days.
No other potential buyers have surfaced since Federated announced in January its desire to sell the Fingerhut operation. However, it expects to sell the catalog subsidiaries Arizona Mail Order, Figi's and Popular Club as going concerns.
The company expects the disposition and monetization of Fingerhut's assets will generate approximately $1.1 billion to $1.3 billion of after-tax cash proceeds (net of one-time costs) over the next four years.
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