Two Chains Get $92 Million in Bids for Stores
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CINCINNATI — Federated Department Stores Inc. and Allied Stores Corp. got a high bid of $92 million for 11 department stores in a day of frantic bidding Tuesday.
U.S. Bankruptcy Judge J. Vincent Aug Jr. tentatively approved the deals, which are subject to final approval after he hears objections by mall developers Aug. 22.
Cincinnati-based Federated and Allied are hoping to work their way out of Chapter 11 bankruptcy-court reorganization by February, 1992.
Mervyn’s of Los Angeles and J. C. Penney Co. of Dallas jointly bid $80 million in cash for eight Jordan Marsh stores in southeastern Florida. Bidding competition Tuesday from Dillard Department Stores Inc., of Little Rock, Ark., drove up the Mervyn’s-Penney bid from the original $66 million.
Mervyn’s is buying stores in Broward Mall, Plantation, Fla.; Pompano Fashion Square, Pompano, Fla.; Dadeland Mall, Miami; 163rd Street Shopping Center, North Miami Beach; Palm Beach Mall, West Palm Beach, Fla.; Town Center Mall, Boca Raton, Fla., and Melbourne Square Shopping Center, Melbourne, Fla.
J. C. Penney is buying the store in Altamonte Mall, Altamonte Springs, Fla.
Federated and Allied officials said they chose the Mervyn’s bid because it provided more cash and a larger profit per store sold.
Aug also approved three uncontested store sales that will bring Federated and Allied a total of $12 million. J. C. Penney is buying the Jordan Marsh store in The Mall at Shelter Cove, Hilton Head, S.C. Montgomery Ward & Co. is purchasing two Burdines stores, one in University Square Shopping Center, Tampa, Fla., and the Crossroads Shopping Center, St. Petersburg, Fla.
Liquidation sales at the stores are to begin next week.
The stores being sold are among 20 that Federated and Allied are trying to sell as part of their plan to consolidate and improve operations of the Florida-based Burdines and Maas Bros. and Jordan Marsh store divisions.
Federated and Allied were purchased by Toronto-based Campeau Corp. and have been trying to eliminate situations in which their stores compete with each other.
If all 20 stores are sold, 27 Burdines and 18 Maas Bros. and Jordan Marsh stores would continue operating in Florida.
Federated and Allied filed for bankruptcy court protection in January, 1990, with more than $7.7 billion in debt.
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