Federated finds buyer for Fingerhut
May 27, 2002-- Home Textiles Today,
Federated has announced that it has signed a non-binding letter of intent with Theodore Deikel, Fingerhut's former ceo, and Thomas Petters, a wholesaler based in Eden Prairie, MN, for the purchase of several of Fingerhut's assets, subject to the negotiation.
The assets included in the agreement are the distribution center and other facilities in St. Cloud, MN; the subsidiary's Minnetonka, MN, corporate headquarters; the data center in Plymouth, MN; the DC facility in Piney Flats, TN; and the Fingerhut name, website and existing inventory, as well as other owned property and equipment.
Federated added that it will suspend the implementation of the ongoing liquidation activities until the outcome is decided.
"This represents clear progress toward our objective of disposing of the Fingerhut business and we are pleased that the buyers have indicated a desire to rehire a number of Fingerhut employees," said Ronald Tysoe, Federated's vice chairman. "Although both parties still must come to terms on a final purchase agreement, we are hopeful that we will be able to do so, and Federated is prepared to move as quickly as possible to get this done."
Federated's negotiations with Business Development Group Acquisition for the entire Fingerhut division — which include catalogs Arizona Mail Order, Figi's and Popular Club — were terminated earlier this month.