Bullock’s Officials Will Leave When Macy’s Takes Over
In a tearful meeting with employees, senior Bullock’s officials confirmed Friday afternoon that they will be leaving the chain and that other dramatic changes will occur once R. H. Macy & Co. buys the department store company.
According to employees who attended the meeting at the downtown Los Angeles headquarters, James E. Gray, chairman, and Frank Doroff, president, told about 350 people jammed into a first-floor conference room that the 22-unit Bullock’s chain will be run by Macy’s Atlanta division.
They also said the seven-store Bullocks Wilshire specialty operation will be managed by I. Magnin, the 26-unit San Francisco-based chain also being acquired by Macy’s. Terry Lundgren, Bullocks Wilshire president, also is departing, Gray and Doroff confirmed.
Employees said that, because merchandising and administrative tasks will shift to Atlanta, they assume that most of Bullock’s 1,000 headquarters employees will be laid off.
“It’s a tragic time,†one employee said.
In a brief telephone interview late Friday, Gray said of the prospect of layoffs: “I think we need to see what the Macy’s people have in mind, more specifics. I’m sure they will express those intentions following the change-of-control date,†which is expected to be late next week. He said he did not yet know what he will do.
The comments by Gray and Doroff confirmed published reports in The Times and elsewhere about an internal reshuffling ordered even before Macy’s officially takes over. It is designed to cut costs and help the company cover the debt resulting from its planned $1.1-billion purchase of Bullock’s, Bullocks Wilshire and I. Magnin.
A Macy’s spokesman said earlier in the day that the company would have no official statement about reports of a management reorganization.
One employee said the Bullock’s workers felt like “lambs being led to slaughter.†Like others who talked about the day’s events, she spoke on the condition that she not be identified.
“Throughout this takeover process, the organization felt that it was somewhat impervious to anything bad happening based on last year’s performance and the performance over the last 10 years,†another worker said. “We felt that, no matter what happened, people would look at us as highly profitable and well-managed.â€
‘Irony’ of Bloodletting
Bullock’s recently has emerged as the top performer among the department and specialty chains owned by Cincinnati-based Federated Department Stores. Many Southern California shoppers prize Bullock’s and Bullocks Wilshire for high quality and service.
One employee noted the irony that a bloodletting will be occurring under Macy’s aegis. Campeau Corp.’s agreement to sell the stores to Macy’s ended a bitter bidding war for Federated between the Toronto developer and the New York retailer. Workers had feared that Campeau would dismantle Federated as he had Allied Stores, a retailer he bought in 1986.
“When we first learned that Macy’s would buy us, people were euphoric,†the worker said. “We felt (Macy) was in the retail business and Mr. Campeau was in land development. There was automatically a hope that we would be part of a department store group.
“Now, it’s just kind of very much nervous anticipation because of the news it will be based in Atlanta, meaning that probably most jobs will go and that the company as we know it will no longer exist.â€
According to a headquarters source, Macy’s representatives are expected to visit the Los Angeles office over the next couple of weeks.
“Indications are that Macy’s is interested in talking to people,†he said. Macy’s is expected to retain only a small staff in Los Angeles.
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