NEW YORK — It’s the end of May.
Early Tuesday, Federated Department Stores Inc. said it completed its $11.9 billion merger with May Department Stores Co.
“We will be meeting with the May company organization and continuing to learn more about its business so we can make the best possible long-term decisions,” said Terry Lundgren, chairman and chief executive officer, in a statement.
Lundgren described the closing of the merger as a “landmark day.”
“Two great organizations have come together, and we see tremendous opportunity ahead,” Lundgren said. “We see opportunity to bring distinctive fashion and affordable luxury to our customers, opportunity for our people to grow and develop, opportunity to increase shareholder value, and opportunity to be a stronger partner for our communities.”
Federated will now have $30 billion in annual sales, making it the largest department store retailer.
In its statement, the retailer said it added seven stores to its list of previously announced Federated-May overlaps. This brings the total number of stores Federated will divest to 75. The closures represent about $2.1 billion in sales. The divesting of the stores is scheduled to begin in 2006.
The merger also results in the conversion of May nameplates to Macy’s. Federated said it intends to “comply with all existing lease and operating agreements” as a result of the conversions, which will take place in the fall of 2006.
The seven additional stores include: Filene’s in Cape Cod Mall in Hyannis, Mass.; a Lord & Taylor in the Walt Whitman Mall in Huntington Station, N.Y.; the Lord & Taylor in the South Shore Mall in Bay Shore, N.Y.; the Macy’s West in Fashion Island in Newport Beach, Calif.; a Macy’s West in Simi Valley Town Center in Simi Valley, Calif.; a Macy’s West in Westminster Mall in Westminster, Calif., and a Macy’s West’s men’s/home store in The Promenade in Woodland Hills, Calif.
“In addition, Federated confirms that it intends to divest either the Filene’s or Macy’s East store in downtown Boston,” the company said. “The specific store to be divested has not yet been determined.”
Related Articles
You May Also Like
Separately, Federated Department Stores reached a multistate agreement designed to eliminate any potential monopolies related to its merger.
As a result, Federated will close or sell 26 stores in five states. The deal was part of an antitrust review the retailer was required to complete before the merger.