RECEIVABLES SOLD: Federated Department Stores Inc. reported Tuesday that it has signed a definitive purchase agreement to sell about $1.2 billion of Fingerhut receivables to CompuCredit Corp., an Atlanta-based credit card company. The transaction, which could save up to 800 jobs, also includes the assumption of $450 million in receivables-backed debt issued by Fingerhut Master Trust. CompuCredit intends to retain Fingerhut employees currently servicing the receivables portfolios at its St. Cloud and Monticello, Minn., facilities. Federated has been informed by the Federal Trade Commission that the standard 30-day Hart-Scott-Rodino Act waiting period has been waived. The company also said it expects the disposition and monetization of Fingerhut’s assets to generate approximately $1.1 billion to $1.3 billion of aftertax cash proceeds, net of one-time costs.
This story first appeared in the July 5, 2002 issue of WWD. Subscribe Today.
TOM’S HONOR: On the agenda for the Gucci shareholders meeting July 15 in Amsterdam is the approval of Group creative director Tom Ford as vice chairman of the company’s management board, giving him a key role in Gucci’s strategic as well as creative decision making. Domenico De Sole is chairman of the management board. Gucci also has a supervisory board comprising eight non-executive directors.
LEVI’S ON REVIEW: Moody’s Investors Service on Tuesday placed Levi Strauss & Co.’s $1.7 billion in debt on review for a possible downgrade. The agency cited the San Francisco-based jeans maker’s five-year sales slump and its low current level of cash generation as concerns, noting that $1.1 billion of its notes are coming to term next year. Levi’s current senior implied debt rating is “B1.” Its senior unsecured rating is “B2.”