Marshall Field’s sold to May Department Stores
Target raising $3.2bn through sale of US chain
US retailer Target has agreed the $3.2bn sale of its Marshall Field’s departments store chain to the May Department Store company.
Target announced the possible sale of the of the 62-store Marshall Field’s business in March, as well as its 266-outlet mid-priced department store chain Mervyn’s, as part of a strategy to focus on its core Target discount store chain, second in the market behind Wal-Mart.
Federated Department Stores, owner of Macy’s and Bloomingdale’s, held talks with target, while retail entrepreneur Galen Weston, owner of Selfridges, was also reported to be interested.
May’s, which operates more than 800 stores in the US including the Lord & Taylor’s and Hecht’s chains, has come out at the top of the list of bidders for Marshall Field’s, which specialises in upmarket fashion and homeware. May’s is also buying nine Mervyn’s stores.
Bob Ulrich, chairman and chief executive officer of Target Corporation, said, “Our decision to sell Marshall Field’s, though not easy, reflects our long-term commitment to create substantial value for our shareholders over time, combined with our responsibility to our team members, our guests and the communities we serve.
“We believe that the sale of Marshall Field’s to The May Department Store Company as an ongoing business enhances the opportunity for all of our stakeholders to enjoy continued success for many years.”
Target also announced a $3bn share buyback programme, and said it expects to make an announcement on the future of Mervyn’s in the next 60 to 90 days.
