Federated Seeks Bids for Lord & Taylor
NEW YORK — Lord & Taylor, which once defined American classic designer styling but lost its cachet amid fierce competition, is on the block.
Federated Department Stores Inc., which purchased Lord & Taylor when it acquired May Department Stores Co. last year, said Thursday that it would sell the New York-based department store chain because it no longer fit with an expansion strategy for its larger Macy’s and Bloomingdale’s chains.
The most likely buyer would be a private investment group, said Phil Zahn, a retail analyst at Fitch Ratings, as “there are not many major department store chains that are looking to make acquisitions” at this point. Other analysts believe that upscale retailers such as Saks Inc. or Neiman Marcus Group Inc. may be interested.
The news sent shares of Federated up $1.32, or 2%, to $72.95.
“Lord & Taylor is a niche specialty retailer with a great name, many outstanding locations, an experienced management team and a strong customer following that makes it a desirable business,” Federated Chief Executive Terry J. Lundgren said in a statement. The transaction is slated to be completed this year.
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