Federated explores options
April 1, 2002,
With negotiations between Federated Department Stores and Business Development Group Acquisitions for the sale of Fingerhut at a stand-still after more than a month, Federated will begin to explore other potential transactions with third parties regarding its catalog division.
Federated had entered into a non-binding letter of intent with BDGA, but the two sides have yet to sign a definitive agreement for the transaction. However, the two sides plan to continue discussions and negotiations.
"We have provided BDGA five weeks to complete due diligence, secure committed financing and execute an agreement on terms acceptable to Federated, and despite good faith efforts by both sides to accomplish this, committed financing has yet to be secured and a transaction has yet to be finalized," said Ronald Tysoe, Federated's vice chairman. "While we are still hopeful of completing a transaction with BDGA, it is now time to additionally explore negotiating the sale of individual components of Fingerhut, with an emphasis on preserving as many jobs as possible in that process."
Federated announced its intention to sell or shutter its Fingerhut operation in January.
Related Content By Author
1200 Suppliers are Ready for You at Intertextile Shanghai
Home & Textiles Today eDaily
Most Viewed Articles
See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.