Federated to Exchange Stores with Belk

Wilmington Morning Star and Business Wire

WILMINGTON, N.C. -- Macy's at Mayfaire will become a Belk store

The Macy's in Mayfaire Town Center, a former Hecht's location, will become a Belk next year under a swap deal between the two stores' parent companies, Belk announced Thursday.

Under the agreement, the Mayfaire store will open as a Belk in spring 2007, according to the announcement. In exchange, Belk will turn over a Parisian store in Collierville, Tenn., to Federated Department Stores Inc., the parent of Macy's.

All store associates in good standing at the Mayfaire store will be employed at the Belk, according to the statement.

Belk already operates stores at Independence Mall and Landfall Center.

Charlotte, N.C.-based Belk Inc. is the country's largest privately owned department store company, with 279 Belk stores and 36 Parisian stores in 18 states, mainly in the Southeast.

The Bon-Ton to Buy Four Parisian Stores

Chain Store Age

York, Pa. - The Bon-Ton Stores Inc. said Wednesday it agreed to pay $22 million in cash for four Parisian department stores and the rights to build a fifth one from privately held department store retailer Belk Inc.

The four stores are located in Michigan, Ohio and Indiana, and generated sales of more than $90 million in fiscal 2005. The fifth store will be located in Michigan and is scheduled to open in October 2007. The deal is expected to close on Oct. 30 pending customary closing conditions.

Once the transaction is completed, The Bon-Ton will operate 282 stores in 23 states, with estimated annual sales of $3.4 billion.

Belk completes purchase of Parisian

CHARLOTTE -- Belk Inc. is officially bigger.

The Charlotte-based department store chain completed its purchase of 38 Parisian stores Monday, further solidifying the chain's place as the nation's largest privately held department store chain.

Belk purchased the stores from Saks, which has been selling its middle-market department stores as it shifts its focus back to its high-end Saks stores.

The purchase includes Parisian stores in Indiana, Michigan and Ohio, creating a new Belk presence in those states. The chain now operates 315 stores in 19 states.

Analysts and Belk officials have said the Parisian purchase could increase the chances the Belk stores will carry more upscale clothing for women. The Parisian stores are likely to see stronger men's sportswear and home merchandise departments, they said.

Belk has said it plans to change the Parisian name to Belk in the third quarter of 2007.

Mall owner sues to stop Belk store

montgomeryadvertiser.com

BIRMINGHAM, Ala. -- Sorry, Belk fans. You just thought you were shopping at a nice department store.

A Belk store isn't classy enough for the owners of an upscale, open-air mall that fashions itself as a destination shopping center near some of Alabama's priciest neighborhoods in surburban Birmingham. The owners have filed suit trying to block plans to replace a Parisian store with a Belk at The Summit shopping center.

The suit by Bayer Retail Co., filed in Jefferson County Circuit Court, says Belk operates moderate-price department stores that would not fit the "first-class retail shopping center" image of The Summit.

The suit came after Birmingham-based Saks Inc. announced it was selling the Parisian chain to Belk Inc. in a $285 million deal, and Belk said all Parisian stores, including the three in Birmingham, would be renamed and converted to carry Belk merchandise.

Converting the Parisian to a Belk would "impact Bayer's ability to attract and keep first-class retail tenants at The Summit" and would tarnish the center's image as a shopping destination, says the suit, filed Aug. 24.

The defendants, Parisian Stores Inc.; its Alabama holding company, Carson Pirie Scott; Saks Inc., and Belk Inc., have not responded to the lawsuit.

Steve Pernotto, Belk's executive vice president of human resources, said the company plans to invest a significant sum on the Summit store and to expand it. The store will carry top brands sold at the chain's flagship store at SouthPark Mall in Charlotte, N.C., he said.

"Where it makes sense to merchandise to a particular customer, that's what we do," Pernotto told The Birmingham News in a story Friday.

Libby Lassiter, Bayer's executive vice president of development and leasing, said Bayer held talks with Belk after the chain said it was buying Parisian. Bayer representatives also visited the chain's SouthPark Mall store.

"We have options and rights and we want an upscale fashion merchandiser" in the space, she said.

Parisian has been one of the center's anchors since 1997. Other retailers at The Summit include Saks Fifth Avenue, Harold's and Anthropologie.

Belk buys Saks' Parisian stores

Note from Steve: You heard it here first

RICK ROTHACKER
rrothacker@charlotteobserver.com

CHARLOTTE - Belk Inc. on Wednesday said it was buying Saks Inc.'s 38 Parisian department stores with locations in nine states in the Southeast and Midwest.

The Charlotte-based department store chain said it will pay $285 million for the ownership of the Parisian stores and will assume operating leases for leased locations. The stores had combined total sales last year of about $723 million. The deal, which has been approved by both boards of directors, is set to close Oct. 2, pending regulatory review.

Upon completion of the transaction, Belk will operate a total of 315 stores in 19 states, including two new Parisian stores set to open this fall.

"This is another excellent opportunity for Belk to expand its store base and further strengthen our market leadership in Alabama and other key markets within our existing footprint," said Tim Belk, chairman and CEO of the chain, said in a statement.

The department store plans to rebrand the acquired stores as Belk in the third quarter of 2007. The company will continue to operate the Parisian corporate offices and a distribution center through March 2007. Employees in those locations will be offered positions with Belk or severance packages.

Last year, Belk bought 47 Proffitt's and McRae's department stores from Saks and later branded 38 of them as Belk stores.

Wachovia Securities, the investment banking unit of Charlotte-based Wachovia Corp., advised Belk on the Parisian transaction.