Raleigh Stores To Acquire Allied’s Garfinckel’s Division
NEW YORK (AP) _ Allied Stores Corp. said Monday it has sold its Garfinckel’s division to Raleigh Stores Corp. for $95 million.
The 10-store Garfinckel chain, which operates in Washington, D.C., and suburban Maryland and Virginia, is the latest Allied division to be sold since the company was acquired by Toronto developer Campeau Corp. in December.
Garfinckel had annual net sales in 1986 of $111.9 million. The division specializes in contemporary apparel, gifts and home furnishings.
Raleigh Stores is a 12-store Washington, D.C.-based specialty retailer of men’s and women’s apparel.
Raleigh Chairman Neal J. Fox said of Garfinckel’s, ″No changes are currently anticipated ... We will continue to operate it as it has in the past.″
Following the $3.4 billion takeover of Allied, the company announced it planned to sell 16 of its 24 store divisions over the next two years to meet a $1.1 billion bank obligation stemming from the acquisition.
Last week, Allied said it was selling its Plymouth Shops women’s clothing chain to Tribeca Holdings Inc. for an undisclosed price.
Among the other divisions sold so far were Allied’s Joske’s department stores and Cain-Sloan stores for $255 million to Dillard Department Stores Inc. and Bonwit Teller stores to Hooker Corp. Ltd. for $101 million.