Regional department store division reported to be for sale
The newest rumor running through the mill is that Saks Inc. (Birmingham, Ala.) may be looking to sell its department store division. And that Federated Department Stores Inc. (Cincinnati) may be interested in the 238-store regional chain operating under the Younkers, Herberger's, Parisian, Carson Pirie Scott, McRae's, Proffitt's, Bergner's and Boston Store nameplates. The division also includes the Club Libby Lu operation.
The Wall Street Journal has named Federated as a suspect suitor for all or part of the Saks group since merger talks between Federated and May Department Stores Co. (St. Louis) have reportedly stalled.
"It is possible that if a deal fell through between Federated and May that Federated would turn around and look for something that would cost them less and not be viewed by the Federal Trade Commission as something that would create a lack of competition," said economist Ellen Beeson of the Bank of Tokyo-Mitsubishi based in New York. "That's the only way I could see it as a possibility that Federated would turn toward Saks."
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