Tuesday, March 01, 2005
Federated purchase means uncertainty for Marshall Field's Monsterjobs Associated Press
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Federated purchase means uncertainty for Marshall Field's Monsterjobs Associated Press
Marshall Field's Monsterjobs employees in Minnesota got their second out-of-town owner in less than a year on Monday when Federated Department Stores announced it was buying rival May Department Stores Co., owners of the Minneapolis-based retailer.
Analysts said some store closings around the nation were inevitable in the $11 billion stock and cash deal that brought together the Cincinnati-based operator of Macy's and Bloomingdale's with the company known for Marshall Field's and Lord & Taylor.
The new company will have $30 billion in annual sales and nearly 1,000 department stores. It wasn't clear how many of Marshall Field's 10 stores in the Twin Cities, Rochester and St. Cloud would be affected. May also owns three David's Bridal stores and seven After Hours Formalwear stores in Minnesota.
The federal government could force Federated to divest some of its stores in the state for antitrust reasons, although some analysts said that regulators were unlikely to trip up the deal.
Banc of America Securities analyst Dana Cohen said cost savings could be huge - $150 million a year - if Federated consolidated St. Louis-based May's seven regional department store divisions.
Dan Skoda, who was president of Marshall Field's from 1991 to 1999 and is now managing partner of D&R Consulting in Chicago, said such consolidation could result in lost jobs at Marshall Field's headquarters in Minneapolis.
A May spokeswoman said current employment figures for Marshall Field's in Minnesota were not immediately available because May's human resources department was too busy with other issues on Monday.
-->Click here for Monster jobs
The deal could also mean the end of another venerated name. As the Marshall Field's name replaced the Dayton's name in 2001, Federated said the Macy's nameplate would probably go up on Marshall Field's stores.
Terry J. Lundgren, Federated's chairman, president and chief executive, said the conversion to the Macy's name was part of Federated's strategy of creating a nationwide brand.
The Dayton's company name has roots stretching back to 1903 when George Dayton renamed his dry goods monsterjob store the Dayton Dry Goods Co. In 1990, the Dayton Hudson Corp. bought the 24 stores with the Marshall Field's name for $1.05 billion.
In 2000, CEO Robert Ulrich changed the company's name to Target Corp. in recognition that the down-market retailer was the company's most profitable division. Last year, Target Corp. sold its Marshall Field's division and its Monsterjobs Twin Cities Mervyn's stores to May for $3.2 billion.
ON THE NET
Federated Department Stores: http://www.federated-fds.com
May Department Stores: http://www.mayco.com
Marshall Field's: http://www.fields.com/
-->Click here for Monster jobs
Federated purchase means uncertainty for Marshall Field's Monsterjobs Associated Press
Marshall Field's Monsterjobs employees in Minnesota got their second out-of-town owner in less than a year on Monday when Federated Department Stores announced it was buying rival May Department Stores Co., owners of the Minneapolis-based retailer.
Analysts said some store closings around the nation were inevitable in the $11 billion stock and cash deal that brought together the Cincinnati-based operator of Macy's and Bloomingdale's with the company known for Marshall Field's and Lord & Taylor.
The new company will have $30 billion in annual sales and nearly 1,000 department stores. It wasn't clear how many of Marshall Field's 10 stores in the Twin Cities, Rochester and St. Cloud would be affected. May also owns three David's Bridal stores and seven After Hours Formalwear stores in Minnesota.
The federal government could force Federated to divest some of its stores in the state for antitrust reasons, although some analysts said that regulators were unlikely to trip up the deal.
Banc of America Securities analyst Dana Cohen said cost savings could be huge - $150 million a year - if Federated consolidated St. Louis-based May's seven regional department store divisions.
Dan Skoda, who was president of Marshall Field's from 1991 to 1999 and is now managing partner of D&R Consulting in Chicago, said such consolidation could result in lost jobs at Marshall Field's headquarters in Minneapolis.
A May spokeswoman said current employment figures for Marshall Field's in Minnesota were not immediately available because May's human resources department was too busy with other issues on Monday.
-->Click here for Monster jobs
The deal could also mean the end of another venerated name. As the Marshall Field's name replaced the Dayton's name in 2001, Federated said the Macy's nameplate would probably go up on Marshall Field's stores.
Terry J. Lundgren, Federated's chairman, president and chief executive, said the conversion to the Macy's name was part of Federated's strategy of creating a nationwide brand.
The Dayton's company name has roots stretching back to 1903 when George Dayton renamed his dry goods monsterjob store the Dayton Dry Goods Co. In 1990, the Dayton Hudson Corp. bought the 24 stores with the Marshall Field's name for $1.05 billion.
In 2000, CEO Robert Ulrich changed the company's name to Target Corp. in recognition that the down-market retailer was the company's most profitable division. Last year, Target Corp. sold its Marshall Field's division and its Monsterjobs Twin Cities Mervyn's stores to May for $3.2 billion.
ON THE NET
Federated Department Stores: http://www.federated-fds.com
May Department Stores: http://www.mayco.com
Marshall Field's: http://www.fields.com/
-->Click here for Monster jobs
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