Federated Withdrawing Offer to Sell Bloomingdale’s
CINCINNATI (AP) _ Federated Department Stores Inc. said Thursday it had withdrawn its offer to sell its Bloomingdale’s chain, one of the company’s most valuable properties.
″Market circumstances - as well as Federated’s own financial status - have changed significantly since we offered Bloomingdale’s for sale,″ Allen Questrom, Federated’s chairman and chief executive officer, said in a statement.
Federated spokeswoman Carol Sanger said, ″The reason for selling it, which was, in part, to raise cash, no longer exists.″
Thursday’s announcement had been expected for some time.
The retailer first announced its intention to sell Bloomingdale’s in September 1989 when the company announced it was unable to meet its debt payments.
Federated and its sister retailing company, Allied Stores Corp. filed for Chapter 11 bankruptcy reorganization in January, listing $7.7 billion in debt, much of it accumulated when Toronto-based Campeau Corp. bought Allied in 1986 and Federated in 1988 in leveraged buyouts.
Since the original Bloomingdale’s announcement, Federated has obtained more operating cash plus debtor-in-possession financing approved by U.S. Bankruptcy Judge J. Vincent Aug Jr.
Federated did not reveal how many offers it had received for Bloomingdale’s nor any details of those offers.
Bloomingdale’s operates 17 stores in New York, Florida, Illinois, Massachusetts, Maryland, Pennsylvania, Texas, Virginia and Connecticut. An 18th store is being built in Palm Beach, Fla., and is to open late this year.