NEW YORK — Federated Department Stores Inc. said today that it plans to divest its 55 store Lord & Taylor chain.
“After a thorough review, we have concluded that Lord & Taylor does not fit with our strategic focus for building the Macy’s and Bloomingdale’s national brands,” said Terry J. Lundgren, chairman, president and chief executiveofficer of Federated, in a written statement. “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 adesirable business.”
Federated said it will now account for Lord & Taylor as a discontinued operation. The divestiture, which is expected to close by the end of 2006, is projected to reduce fourth quarter 2005 earnings from continuing operations by about 10 cents per share.
Federated acquired Lord & Taylor last year in a $17 billion deal to merge with May Department Stores. New York-based Lord & Taylor had sales in 2004 totaling $1.57billion.
Goldman Sachs & Co. and JPMorgan Chase are advising Federated on the divestiture.
For more, see tomorrow’s WWD.