Federated agrees Fingerhut sale
Deal transfers assets of catalogue brand to ex-CEO
June 12 2002
US retailer Federated Department Stores has finalised the sale of the Fingerhut brand and assets to the catalogue retailer’s former CEO.
Fingerhut, one of the best known mail order brands in the US, was bought by Federated in 1999. The department store operator announced its intention to dispose of Fingerhut, along with a number of other catalogue bands, in January.
At the time, Federated said it did not expect to sell the business as a going concern, and closed down the Fingerhut operations. However, the buyer, FAC Acquisitions, hopes to revive the brand, which sold clothing and homeware and had a strong following in middle America.
FAC is headed by ex-Fingerhut CEO Theodore Deikel, and Thomas J. Petters, owner of a wholesale business based in Minnesota. Along with the Fingerhut name, website and existing inventory The sale includes the Fingerhut head office, data centre and a distribution centre, all in Minnesota, as well as a second distribution centre in Tennessee.
Ronald Tysoe, Federated vice chairman, said: “We are pleased that we have been able to negotiate this definitive agreement with Tom Petters and Ted Deikel for the sale of these Fingerhut assets, and that the buyers have indicated a desire to rehire a number of Fingerhut employees as part of their future business plans.”
The sale price has not been revealed, and the final agreement is subject to due diligence.
