The company will seek opportunities to offer affected employees transfers to other Federated facilities.
Severance packages will be provided to employees who are laid off as a result of this consolidation.
Distribution center consolidations are consistent with Federated's previously announced estimates to realize approximately $175 million in cost synergies in 2006 and $450 million in annual cost synergies in 2007 and beyond as a result of the May Company merger.
Expenses associated with the consolidations are included in the previously announced estimate of approximately $1 billion in one-time costs spread over three years beginning in 2005.
Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers.
With the May Company's more than 490 department stores and more than 720 bridal and formalwear stores in 49 states.
Federated Department Stores Inc
marketing@alchempro.com
