FINGERHUT BUYS BROWNSTONE STUDIO CATALOG
NEW YORK — Fingerhut Inc., a division of Federated Department Stores, on Tuesday snapped up the Lew Magram and Jean Grayson’s Brownstone Studio catalog operations for $6.75 million in a Manhattan bankruptcy court auction.
The purchase, still subject to bankruptcy court approval, is expected to close by the end of the week, according to Arthur Steinberg of Kaye, Scholer, Fierman, Hays & Handler, Fingerhut’s counsel. Both catalog operations sell women’s apparel and accessories.
As reported, the two catalog operations filed for Chapter 11 bankruptcy court protection in January when they encountered a cash crunch arising from inadequate working capital. The parent company, StyleSite Marketing Inc., also filed for Chapter 11, but is not included in Tuesday’s sale.
Fingerhut has a history of pulling catalog companies out from bankruptcy proceedings. In December 1998, three months before becoming part of the Federated family, Fingerhut acquired Bedford Fair Industries Inc. for an undisclosed amount. The purchase was for women’s apparel catalogs Bedford Fair Lifestyles and Willow Ridge.