From: ASAP
Federated Department Stores, Inc. (NYSE:FD)(PCX:FD) announced today that it has agreed to sell to CompuCredit Corporation, an Atlanta-based credit card company, approximately $1.2 billion of Fingerhut receivables, subject to the final negotiation of a definitive purchase agreement. The transaction also includes the assumption of $450 million in receivables-backed debt that has been issued by the Fingerhut Master Trust.
Although terms of the agreement are not being disclosed, both companies have confirmed that as part of the transaction, CompuCredit intends to retain more than 800 Fingerhut employees currently servicing the receivables portfolios at the company's St. Cloud and Monticello, MN, credit facilities.
"We have made significant progress toward negotiating a final agreement with CompuCredit for the purchase of Fingerhut receivables, and we expect to be able to complete this transaction within the next month," said Ronald W. Tysoe, Federated's vice chairman. "We obviously are very pleased with the prospect of preserving such a large number of jobs in Minnesota, as this has been a primary focus for us in the disposition of Fingerhut assets."
The company reiterated its earlier expectations that the disposition and monetization of Fingerhut's assets will generate approximately $1.1 to $1.3 billion of after-tax cash proceeds, net of one-time costs.
Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales from continuing operations of more than $15.6 billion. Federated currently operates more than 460 stores in 34 states, Guam and Puerto Rico, under the names of Macy's, Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus and Rich's, as well as macys.com and Bloomingdale's By Mail
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