NEW YORK — May Department Stores Co., which last November was barred by a federal judge from taking over four Rochester, N.Y.-area McCurdy & Co. department stores, agreed Monday to sell the stores to The Bon-Ton.
In an out-of-court settlement with the state attorney general filed in Rochester Federal Court Monday, May Co. said it would sell one store in each of four Rochester-area malls to avoid antitrust charges.
The suit pitted May Co., a national department store operator, against Bon-Ton, a regional department store operator, which has also been on the acquisition trail.
As part of the settlement, May Co. will pay the state $75,000 in costs and fees and agreed to notify the attorney general of certain new store acquisitions in New York over the next five years, according to the settlement.
As reported, Bon-Ton filed suit against May Co. when May Co. signed a deal to buy eight department stores from the now-defunct McCurdy chain. May Co. wanted the stores for its Kaufmann division.
Bon-Ton, which had been negotiating with McCurdy’s to purchase the same units, claimed that May Co. purchased the sites — four of which were later closed or sold to the landlord — simply to keep Bon-Ton out of the market and limit competition. The attorney general joined the suit soon after. — Fairchild News Service