Premier retailer Federated Department Stores Inc announced it plans to divest its Lord & Taylor division and the company expects to complete a transaction prior to the end of 2006.
'After a thorough review, they have concluded that Lord & Taylor does not fit with their strategic focus for building the Macy's and Bloomingdale's national brands,' said Terry J Lundgren, Federated's Chairman, President and Chief Executive Officer.
'However, Lord & Taylor is a niche specialty retailer with a great name, many outstanding locations, an experienced management team and a strong customer following that makes it a desirable business.'
Lord & Taylor, based in New York, operates 55 stores in New Jersey, New York, Illinois, Massachusetts, Connecticut, Maryland, Virginia, Michigan, Pennsylvania, Missouri, Delaware, Florida and the District of Columbia.
The division's 2004 sales were $1.566 billion.
Federated will now account for Lord & Taylor as a discontinued operation in its monthly sales and quarterly earnings reports.
This is expected to reduce fourth quarter 2005 earnings from continuing operations by approximately 10 cents per share.
Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers.
With the May Company's more than 490 department stores and more than 720 bridal and formalwear stores in 49 states, the District of Columbia and Puerto Rico, Federated operates about 950 department stores and more than 720 bridal and formalwear stores in 49 states.
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