Rundown of Major Dates Marking the Rise and Fall of Campeau’s US Empire With AM-Campeau Bjt
Undated (AP) _ Here is a list of events chronicling Campeau Corp.’s debt-financed expansion into a U.S. retailing giant and its rapid descent into a financial crisis, which forced the Canadian company to seek Chapter 11 bankruptcy protection for its American department store chains on Monday:
Dec. 31, 1986 - Campeau buys Allied Stores Corp. for $3.4 billion, marking the real estate development company’s first major foray into the American retailing industry.
Jan. 5, 1987 - Documents filed with the Securities and Exchange Commission show Campeau plans to sell 16 Allied divisions and cut its holdings of nearly 700 stores by more than half in order to pay $1.1 billion in bank loans used to finance the takeover.
April 13, 1987 - Campeau agrees to sell Allied’s 260-store Joske’s chain an four-store Cain-Sloan chain to Dillard Department Stores Inc. for $255 million.
April 30, 1987 - Campeau agrees to sell Allied’s 13-store Bonwit Teller chain for $101 million to Hooker Corp. Ltd., one of Australia’s largest and oldest conglomerates that would later encounter financial trouble itself.
Jan. 25, 1988 - Campeau, still digesting its takeover of Allied, makes a $4.2 billion bid for Federated Department Stores Inc., but the nation’s fifth- largest retailing company vows to resist.
Feb. 3, 1988 - Campeau sweetens the offer to $5.2 billion, but Federated rejects the offer as inadequate and indicates it’s talking with other possible suitors about a ″white knight″ purchase.
Feb. 16, 1988 - Campeau again sweetens the offer to $5.7 billion but Federated rejects it.
Feb. 29, 1988 - R.H. Macy & Co. Inc. makes a surprise $6.1 billion offer for Federated. Campeau scrambles to respond and within hours makes a competitive offer.
March 8-31, 1988 - In a flurry of complex legal steps and countersteps, Campeau and Macy maneuver to win control of Federated in a bidding war that raises the price by nearly $2.5 billion above Campeau’s original offer.
April 1, 1988 - Campeau wins Federated in a $6.6 billion compromise deal, arranged in a three-hour meeting between chairman Robert Campeau and Macy chairman Edward Finkelstein. Under the arrangement, Macy buys two Federated divisions, 29-store Bullock’s and Bullock’s-Wilshire and 25-store I. Magnin, for $1.1 billion, giving Macy’s a strong presence in California. In addition, Campeau agrees to sell Allied’s 46-store Brooks Brothers unit to Britain’s Marks & Spencer PLC for $750 million, and agrees to sell Federated’s 16-store Filene’s and 37-store Foley’s chains to May Department Stores Co. for more than $1 billion.
Sept. 7, 1988 - Campeau sells Federated’s Gold Circle and Richway chains totaling 76 stores to Kimco Development Corp. for $325 million.
Nov. 1, 1988 - Uncertainty over the outlook for junk-bond financing forces Campeau to delay a planned sale of more than $1 billion in the debt securities. The delay is seen by some retailing analysts as a sign that Campeau may have taken excessive risks in relying heavily on debt to expand.
Nov. 29, 1988 - Campeau sells Allied’s 91-store Ann Taylor specialty clothing chain for $430 million to an investor group that includes the chain’s management and Merrill Lynch Capital Markets. The sale marks a reversal for Campeau, which had once vowed to keep Ann Taylor as one of its crown jewels, and is seen as another sign that Campeau is having trouble financing its debts.
April 28, 1989 - Campeau President James Roddy and a key financial executive quit over differences with the chairman over how to approach the company’s growing financial problems. It is the latest of many departures that undermine the company’s senior management.
Sept. 8, 1989 - Under growing pressure because of debts approaching $10 billion, Campeau announces a major financial restructuring that would involve an emergency $250 million loan from Canadian developer Olympia & York and the sale of its prized Bloomingdale’s chain. Robert Campeau loses effective control of the retailing side of his empire.
Dec. 13, 1989 - Campeau admits for the first time that its retail subsidiaries may have to seek Chapter 11 protection to resolve their financial problems.
Dec. 14, 1989 - Merchandise credit firms, worried that Campeau’s retailing units could run out of cash in weeks, cut off credit on shipments to Campeau stores. With Christmas sales showing disappointing results, speculation grows over how the stores will pay for the merchandise in their Spring 1990 season.
Dec. 23, 1989 - Citibank tells Campeau it is technically in default on more than $2.3 billion in debt and requests an explanation that would show the company’s operations are solvent.
Jan. 2, 1990 - Citibank gives Campeau more time to provide reassurances on its financial conditions.
Jan. 4, 1990 - National Bank of Canada seizes 35 percent of Campeau Corp. voting stock after another company controlled by Robert Campeau defaults on a loan.
Jan. 10, 1990 - Campeau’s U.S. retailing operations say they have mailed payments to apparel suppliers on time. But speculation persists that the units will seek bankruptcy court refuge.
Jan. 15 - Campeau’s U.S. retailing units file for protection from creditors under Chapter 11 of the federal bankruptcy laws, which allows them a repreive from creditors while working out a way to pay their debts and keep stores open.