Federated finds potential buyer for Fingerhut
February 21, 2002-- Home Textiles Today,
Cincinnati — In a deal that could lead to the purchase of Federated Department Stores' Fingerhut subsidiary and substantially all of Fingerhut's assets, the retailer has signed a non-binding letter of intent with Business Development Group Acquisitions Inc. (BDGA), Wayzata, MN, a management firm that specializes in corporate turnarounds.
BDGA, founded by former United Shipping and Technology chairman Peter Lytle, is attempting to obtain financing for the transaction. BDGA must notify Federated by early March of its ability to proceed.
Ronald Tysoe, Federated's vice chairman, said the retailer is not holding active discussions with any other parties regarding Fingerhut, although the sale process remains open.