Federated reaches deal to sell part of Fingerhut
May 23, 2002-- Home Textiles Today,
Cincinnati — Federated Department Stores Inc. 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 negotiations.
The assets included Fingerhut's distribution center and other facilities in St. Cloud, MN; the 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 property and equipment.
Federated will suspend the division's liquidation activities until the outcome is decided.
Federated's negotiations with Business Development Group Acquisition for the entire Fingerhut division — which includes catalogs Arizona Mail Order, Figi's and Popular Club - fell apart earlier this month.
In other company news, Federated has announced that its New York-based Federated Merchandising Group (FMG) division has agreed to supply private brand merchandise to the Bay, Hudson's Bay Co.'s department store division.
With 100 locations in Canada, the Bay will begin carrying a broad range of Federated brands this fall, including selected Charter Club home merchandise. FMG expects that by yearend more than 80 Bay locations will have its merchandise.
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