US: Federated announces store closures
Retailer Federated Department Stores said it will shut five underperforming Lord & Taylor stores and convert one other to the Macy's format. The company also said it would divest its Robinsons-May store in Scottsdale, Arizona.
The following stores will close in late July or early August 2006 following the completion of clearance sales that are scheduled to begin 30 April:
St Louis Galleria, St Louis, MO, West County, St. Louis, MO, Christiana Mall, Newark, DE, Fairlane Town Center, Dearborn, MI, Northshore Mall, Peabody, MA.
In addition, Federated will convert the current Lord & Taylor store in downtown Philadelphia to a Macy's. This Lord & Taylor is expected to close on or about 1 June 2006, after completion of a clearance sale that begins 2 April It will open as Macy's on or about 1 Aug following some minor remodelling.
The Strawbridge's store in downtown Philadelphia will close on or about 1 June 2006, after completion of a clearance sale that will begin 1 April, Federated will seek buyers or replacement tenants for space currently occupied by Strawbridge's.
Employees at all Lord & Taylor stores to be closed will be eligible for severance and outplacement assistance. In addition, employees of both downtown Philadelphia stores will be given first consideration for positions to be created at the new downtown Macy's store and surrounding Macy's locations.
The remaining 49 Lord & Taylor stores in New Jersey, New York, Illinois, Massachusetts, Connecticut, Maryland, Virginia, Michigan, Pennsylvania, Florida and the District of Columbia will remain open and operating. As previously announced, Federated continues to pursue divestiture of its Lord & Taylor division, and a transaction is expected before the end of 2006.
Federated acquired Lord & Taylor in August 2005 as part of its merger with The May Department Stores Company.
Federated will divest the Robinsons-May store in Scottsdale Fashion Square in Scottsdale, AZ after a clearance sale starting on 2 April. The company intends to offer positions in other area Macy's stores to as many Robinsons-May Scottsdale employees as possible.
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