NEW YORK--Federated Department Stores Inc. will file a skeletal disclosure statement in the R.H. Macy & Co. Chapter 11 this afternoon that sheds little light on the number of stores to be closed or the number of jobs it expects to eliminate in the merger of the two companies.
As reported, the retailer is still analyzing Macy's financial information and has not yet decided which Macy's or Federated stores will need to be closed and how many salespersons, back office and executives will be laid off.
That information is expected to be included in an amended disclosure statement to be filed in late September.
The disclosure statement is expected to forecast Federated sales over the next five years and make certain cash flow projections.
In addition to needing more time to fully digest Macy's financial and operations data, Federated is still tied up in antitrust negotiations with the New York State attorney general over which stores and how many sites it will have to sell to gain the state's approval of the merger.
The attorney general, G. Oliver Koppell, demanded on Aug. 23 that Federated sell Macy's 2.1-million-square-foot Herald Square flagship and all 11 other downstate Macy stores.
Not unexpectedly, Federated has balked at that demand and has begun negotiations toward a possible settlement. Both sides said they are hopeful a settlement agreement can be reached.
Federated said selling the 12 Macy's stores would force 300 buying jobs out of the city.
Federated hopes to finalize the merger and gain bankruptcy court approval on Macy's Chapter 11 plan by yearend. A lengthy negotiating period or an antitrust lawsuit brought by Koppell--which Koppell said he would file if an agreement isn't reached--could delay Macy's emergence from Chapter 11 until 1995.
--Fairchild News Service

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